Cost drivers and the value chain. A Toyota analyst is preparing a presentation on cost drivers. Unfortunately, both the list ofits business function areas and the accompanying list of representative cost drivers are accidentally randomized. The two lists now on the computer screen are as follows:

Business Function Area A. Design of products/processes B. Customer service C. Marketing D. Research and development E. Distribution F. Production Representative Cost Driver 1. Number of cars recalled for defective parts 2. Number ofmachine assembly hours 3. Number ofresearch scientists 4. Hours of computer-aided design (CAD) work 5. Number ofsales personnel 6. Weight of cars shipped Required 1. Rearrange the business functions into a logical value-chain sequence then match each business function area with its representative cost driver.
2. Give a second example of a cost driver for each of Toyota’s business function areas.