Value chain and classification of costs, computer company. Apple Computer incurs the following costs:

Electricity costs for the plant assembling the Alacintosh computer line of products Transportation costs for shipping Macintosh software to a retail chain Payment to David Kelley Designs for design of the Powerbook carrying case Salary of a computer scientist working on the next generation oflaptops Cost of Apple employees’ visit to a major customer who has purchased an Apple product to illustrate Apple’s ability to interconnect with other computers

f. Purchase of competitors’ products for testing against potential future Apple products g. Payment to a television station for running Apple advertisements h. Cost of cables purchased from an outside supplier to be used with the Macintosh printer Required Classify each cost item in parts

(a) to (h) as belonging to a component of the value chain shown in Exhibit 1-2

(p. 5).