
Classify each cost item of Ripon Printers given below into one of the business functions of the value chain, either (1) R&D, (2) design of products and processes, (3) production, (4) marketing (including sales), (5) distribution, or (6) customer service.
Item:
a.cost of customer order forms
b.cost of paper used in manufacture of books
c.cost of paper used in packing cartons to ship books
d.cost of paper used in display at national trade show
e.depreciation of trucks used to transport books to college bookstores
f.cost of the wood used to manufacture paper
g.salary of the scientists attempting to find another source of printing ink
h.cost of designing the book size so that a standard-sized box is filled to capacity
Correct Answer:
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b.(3) ...
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