A Johnson & Johnson analyst is preparing a presentation on cost drivers at one of its pharmaceutical

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A Johnson & Johnson analyst is preparing a presentation on cost drivers at one of its pharmaceutical drug subsidiaries. Unfortunately, both the list of its business functions and the accompanying list of representative cost drivers are accidentally randomized. The two lists now on the computer screen are:
Business Function
A. Production
B. Research and development
C. Marketing
D. Distribution
E.
Design of products/processes
F. Customer service
Representative Cost Driver
1. Minutes of TV advertising time on 60 Minutes
2. Number of calls to toll-free customer telephone line
3. Hours the Tylenol packaging line is in operation
4. Number of packages shipped
5. Hours spent designing tamper-proof bottles
6. Number of patents filed with U.S. Patent Office
Required
Match each business function with its representative cost driver.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Cost Accounting A Managerial Emphasis

ISBN: 978-0131495388

12th edition

Authors: Charles T. Horngren, Srikant M. Datar, George Foster

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