Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function Cost Item Answera. Research and development 1. Purchase of raw materialsb. Design 2. Advertisingc. Production 3. Salary of research scientistsd. Marketing 4. Shipping expensese. Distribution 5. Reengineering of product assembly processf. Customer service 6. Replacement parts for warranty repairs7. Manufacturing supplies8. Sales commissions9. Purchase of CAD (computer-aideddesign) software10. Salary of website designer
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred:
Business Function Cost Item Answer
a. Research and development 1. Purchase of raw materials
b. Design 2. Advertising
c. Production 3. Salary of research scientists
d. Marketing 4. Shipping expenses
e. Distribution 5. Reengineering of product assembly process
f. Customer service 6. Replacement parts for warranty repairs
7. Manufacturing supplies
8. Sales commissions
9. Purchase of CAD (computer-aided
design) software
10. Salary of website designer
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
