Value chain and classification of costs, pharmaceutical company. QLT Inc., a Canadian biopharmaceutical company, incurs the following
Question:
Value chain and classification of costs, pharmaceutical company. QLT Inc., a Canadian biopharmaceutical company, incurs the following costs:
a. Cost ofredesigning blister packs to make drug containers more tamperproof
b. Cost ofvideos sent to doctors to promote sales of a new drug
c. Cost of a toll-free telephone line used for customer inquiries about usage, side-effects of drugs, and so on
d. Equipment purchased by a scientist to conduct experiments on drugs awaiting approval by the government
e. Payment to actors on infomercial to be shown on television promoting Visudyne®, a new treatment for age-related progressive blindness
f. Labour costs of workers in the packaging area of a production facility g. Bonus paid to a salesperson for exceeding monthly sales quota h. Cost of the Purolator courier service to deliver drugs to hospitals Required Classify each cost item in parts
(a) to (h) as belonging to a component of the value chain shown in Exhibit 1-2
(p. 5).
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9780131971905
4th Canadian Edition
Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall