Boots the Chemist incurs the following costs: a. Cost of redesigning blister packs to make drug containers

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Boots the Chemist 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 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 monthly sales quota.
h. Cost of 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 Exhibit 1.5.
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Management and Cost Accounting

ISBN: 978-1405888202

4th edition

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

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