Question

A Canadian biopharmaceutical company incurs the following​ costs:

1.	Cost of redesigning blister packs to make drug containers more​ tamper-proof.
2.	Cost of videos sent to doctors to promote sales of a new drug.
3.	Cost of a​ toll-free telephone line used for customer inquiries about​ usage, side effects of​ drugs, and so on.
4.	Equipment purchased by a scientist to conduct experiments on drugs awaiting approval by the government.
5.	Payment to actors in an infomercial to be shown on television promoting​ Visudyne, a new treatment for​ age-related progressive blindness.
6.	Labour costs of workers in the packaging area of a production facility.
7.	Bonus paid to a salesperson for exceeding monthly sales quota.
8.	Cost of the Purolator courier services to deliver drugs to hospitals.

Requirement

Classify each of the cost items​ (1-8) as one of the business functions of the value chain.

Cost item value chain business function

1. Cost of redesiging blister packs to make drug container more temper-proof ----------------------

Answer 1

1
	Item	Value Chain Business Function
	1	Design of products and processes
	2	Marketing
	3	Customer service
	4	Research and development
	5	Marketing
	6	Production
	7	Marketing
	8	Distribution