E6.21 LO 6.3 Classifying costs; value chain: insurance Using the value chain classifications provided, classify the costs listed below for a major bank:

(a) research and development

(b) design

(c) production/delivery

(d) marketing

(e) customer support. Costs: 1. Salaries of the customer service staff who process deposits and withdrawals. 2. Salaries of the managers who develop new services. 3. Cost of IT equipment used by customer service staff. 4. Cost of the central computer systems used to manage and process all transactions. 5. Salaries of staff who deal with customer complaints. 6. Cost of operating ATMs. 7. Cost of TV advertising. 8. Salaries of the head office team that monitors trends in the banking industry.