Classify costs along the value chain (Learning Objectives 2, 4)}

Suppose Apple Computer reported the following costs last month (all costs are in millions):

\section*{Requirements}
1. Use the following format to classify each of these costs according to its place in the value chain. (Hint: You should have at least one cost in each value-chain function.)

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Payment to UPS for delivering PCs to customers. $ 300 Cost of hard drives used. 4,700 Cost of Internet banner ads. 650 Plant janitors' wages. 10 Wages of workers who assemble the PCs 1,500 Cost of customer hotline for troubleshooting problems...... Wages of forklift drivers on the plant floor 40 25 Plant utilities. Cost of software loaded on computers. 35 30 Depreciation on plant and equipment Salaries of scientists working on next-generation laptops.... Insurance and taxes on plant property. 300 45 40 Cost of oil used for conveyor belts and other plant equipment. Payment to engineers redesigning the exterior case........... Wages of sales associates taking phone orders... Cost of circuit boards used. Total S 20 50 5,500 $13,250