Boots, which operates a chain of pharmacies in the UK, incurs the following costs: a. Cost of
Question:
Boots, which operates a chain of pharmacies in the UK, incurs the following costs:
a. Cost of redesigning blister packs to make drug containers more tamperproof.
b. Cost of videos sent to doctors to promote sales of a new drug.
c. Cost of website’s ‘frequently asked questions’ for customer enquiries about usage, side-effects of drugs, and so on.
d. Equipment purchased by a scientist to conduct experiments on drugs yet to be approved by the government.
e. Payment to actors on a feature to be shown on television promoting new hair-growing product for balding men.
f. Labour costs of workers in the packaging area of a production facility.
g. Bonus paid to a salesperson for exceeding the monthly sales quota.
h. Cost of the courier service to deliver drugs to hospitals.
Required
Classify each of the cost items in parts a–h into a component of the value chain shown in Exhibit1.4.
Step by Step Answer:
Management And Cost Accounting
ISBN: 9781292232669
7th Edition
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan