Identify each value chain activity listed at the beginning of the exercise with one of the following value-chain categories:

a. Design of products and processes

b. Production

c. Marketing

d. Distribution

e. Customer service

2.

Use the list of preceding cost drivers to find a reasonable cost driver for each of the activities in TTC's value chain.

Requirements 1 and 2. Identify each value chain activity with one of the value-chain categories. Select a cost driver for each of the activities in TTC's value chain.

Begin with category a. design of products and processes, then b. production, c. marketing, d. distribution, and finally e. customer service. (Select only one cost driver for each activity. Choose the best possible cost driver from the choices available. If a box is not used in the table, leave the box empty; do not select a label.)

Value-chain category

Activity

Cost driver

a.

Design of products and processes