Reference no: EM132775087

A Santos & Santos analysts is preparing a presentation on cost drivers at one of its pharmaceutical drug subsidiaries. Unfortunately, both the list of its business functions and the accompanying list of representative cost drivers are accidentally randomized.

The two lists now on the computer screen are:

Business Function                          Representative Cost Driver

A. Production 1.                           Minutes of TV advertising time on TV Patrol
B. Research and development 2.     Number of calls to toll-free customer telephone line
C. Marketing 3.                           Hours the Alaxan packaging line is in operation
D. Distribution 4.                        Number of packages shipped
E. Design of products/ processes 5.  Hours spent designing tamper-proof bottles
F. Customer service 6.                    Number of patents filed with Phil. Patent Office

Problem 1. Match each business function with its representative cost driver.

Problem 2. Give a second example of a cost driver for each business function of Santos & Santos's pharmaceutical drug subsidiary.