E6.22 LO 6.4 Classifying costs; value chain: retailer Walworths is a major independent supermarket located in West Wyalong. Classify the costs listed below, using these value chain classifications:

(a) purchasing

(b) production/sales

(c) marketing

(d) distribution

(e) customer support. Costs: 1. Wages paid to the purchasing manager. 2. Wages paid to the staff who operate the service desk-the service desk assists customers to locate items in the store and resolves customer complaints.

3. Electricity-the fridges and freezers that store cold goods in the shop account for most of the electricity consumed. 4. Cost of plastic bags supplied to customers with sales. 5. Wages paid to check-out assistants. 6. Wages paid to the supermarket manager. 7. Cost of advertising in the local paper. The West Wyalong Word.