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Hardcover Company Incurs the Following Costs When It Manufactures Books

Question 76

Essay

Hardcover Company incurs the following costs when it manufactures books.
1. Cost of customer order forms.
2. Cost of paper used in manufacture of books.
3. Cost of paper used in packing cartons to ship books.
4. Cost of paper used in display at national trade show.
5. Amortization of delivery trucks.
6. Amortization of the wood used in the manufacturing plant.
7. Salary of the scientists attempting to find another source of printing ink.
Required:
Classify each one of them according to one of the value chain functions below:
a. Research and development.
b. Design of products, services, and processes.
c. Production.
d. Marketing.
e. Distribution.
f. Customer service.

Correct Answer:

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1. d. Marketing
2. c. Producti...

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