Pfizer, a pharmaceutical company, incurs the following costs:

a. Payment of booth registration fee at a medical conference to promote new products to physicians

b. Cost of redesigning an insulin syringe to make it less painful

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

d. Equipment purchased to conduct experiments on drugs yet to be approved by the government

e. Sponsorship of a professional golfer

f. Labor costs of workers in the packaging area of a production facility

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

h. Cost of FedEx courier service to deliver drugs to hospitals

Required

Classify each of the cost items (a– h) as one of the business functions of the value chain shown in Exhibit (page6).

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Research and Design of Products and Production Marketing Distribution Customer Service DevelopmentProcesses