Classify costs along the value chain for a retailer (Learning Objective 2)

Suppose Radio Shack incurred the following costs at its Charleston, South Carolina, store:

Requirements 1.Use the following format to classify each cost according to its place in the value chain.

2. Compute the total costs for each value-chain category.
3. How much are the total inventoriable product costs?

Transcribed Image Text:

Research on whether store should sell Payment to consultant for advise on satellite radio service...... $ 400 location of new store... $2,500 Purchases of merchandise 30,000 Freight-in 3,000 Rearranging store layout 750 Salespeople's salaries ................... 4,000 Newspaper advertisements..... 5,000 Customer complaint department......... 800 Depreciation expense on delivery trucks..... 1,000