Cost Item

Value Chain Business Function

1.

Cost of redesigning blister packs to make drug containers more tamper-proof.

2.

Cost of videos sent to doctors to promote sales of a new drug

3.

Cost of a toll-free telephone line used for customer inquiries about usage, side effects of drugs, and so on.

4.

Equipment purchased by a scientist to conduct experiments on drugs awaiting approval by the government.

5.

Payment to actors in an infomercial to be shown on television promoting Visudyne, a new treatment for age-related progressive blindness.

6.

Labour costs of workers in the packaging area of a production facility.

7.

Bonus paid to a salesperson for exceeding a monthly sales quota.

8.

Cost of the Purolator courier services to deliver drugs to hospitals.

Requirement Classify each of the cost items (1-8) as one of the business functions of the value chain.