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HW1 - 2-23 Cost drivers and the value chain 2 Business...

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2-23 Cost drivers and the value chain. 2. Business Function Representative Cost Driver Research and development Hours of laboratory work Number of new drugs in development Design of products/processes Number of focus groups on alternative package designs Hours of process engineering work Production Number of units packaged Number of tablets manufactured Marketing Number of promotion packages mailed Number of sales personnel Distribution Weight of packages shipped Number of supermarkets on delivery route Customer service Number of units of a product recalled Number of personnel on toll-free customer phone lines 2-31 Income statement and schedule of cost of goods manufactured. Howell Corporation Income Statement for the Year Ended December 31, 2007 (in millions) Revenues $950 Cost of goods sold: Beginning finished goods, Jan. 1, 2007 $ 70 Cost of goods manufactured (below) 645 Cost of goods available for sale 715 Ending finished goods, Dec. 31, 2007
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