Question

classify each of the j.m. smucker company’s costs as one of the six business functions in the value chain.
a. cost of a prime - time tv ad featuring smucker’s® fruit & honey™ fruit spreads
b. salary of engineers who are designing the new plant’s layout
c. depreciation on orrville, ohio, plant
d. depreciation on delivery vehicles
e. transportation costs to deliver folgers coffee® to retailers such as kroger, walmart, and save - a - lot
f. costs of a customer support center website
g. plant manager’s salary
h. purchase of strawberries used in smucker’s® strawberry preserves
i. depreciation on food research lab

Explanation:

Each cost is matched to the corresponding value chain business function based on the activity's purpose:

• Marketing: Costs to promote products to customers.
• Design/Development: Costs for creating new facilities/products.
• Production: Costs related to manufacturing goods.
• Distribution: Costs to get products to retailers/customers.
• Customer Service: Costs to support existing customers.
• Research & Development: Costs for product/process innovation.

Answer:

a. Marketing
b. Design/Development
c. Production
d. Distribution
e. Distribution
f. Customer Service
g. Production
h. Production
i. Research & Development