Lucky Cow Dairy provided the following expense information for May:
| Assembly-line workers’ wages | $72,000 |
| Caps for milk bottles | 3,000 |
| Reconfiguring the assembly line | 125,000 |
| Customer support hotline | 10,000 |
| Delivery expenses | 20,000 |
| Depreciation on factory equipment | 75,000 |
| Plastic milk bottles | 52,000 |
| Salaries of salespeople | 63,000 |
| Salaries of research scientists | 70,000 |
| Customer toll-free order line | 6,000 |
1. What is the total cost of research and development of the value chain?
2. What is the total cost for the production category of the value chain?
3. What is the total cost for the distribution category of the value chain?
4. What is the total cost for the marketing category of the value chain?
5. What is the total cost for the customer service category of the value chain?
ANSWERS Concepts and reason
Accounting: Accounting is a process of recording the transactions, classifying them in a specific manner, and then it is the process of summarizing and analyzing to interpret the results. It is a process of preserving the accounts.
Financial accounting is a process of preparing reports to provide all financial information to both the internal and external users of an organization. The financial statements that are prepared under the financial accounting are examined by independent certified public accountants, at the year-end, who would express their opinion on the fairness of the reports shown by a company. Fundamentals
Research and development department: It is an activity of the company which will differ from one company to the other. It plays an important role in the product cycle.
Expense: Expense is any outflow of cash to earn income for present period. It is the cost to company. Matching concept insists that expenses should be matched with revenue.
Depreciation: Depreciation is the process of reducing the value of the assets. It is a non-cash expense of the company. The value of assets is reduced due to the wear and tear caused for assets by its usage.
Q1. Hidden
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