Classify costs by value chain function (Learning Objective 2)

Classify each of Hewlett-Packard’s (HP’s) costs as one of the six business functions in the value chain.

a. Depreciation on Roseville, California, plant

b. Costs of a customer support center Web site

c. Transportation costs to deliver laser printers to retailers such as Best Buy

d. Depreciation on research lab

e. Cost of a prime-time TV ad featuring the new HP logo

f. Salary of scientists at HP laboratories who are developing new printer technologies g. Purchase of plastic used in printer casings h. Salary of engineers who are redesigning the printer’s on-off switch i. Depreciation on delivery vehicles j. Plant manager’s salary