P6.33 LO 6.3 Classifying costs by value chain and cost behaviour categories: financial planning firm WealthSmart is a medium-sized financial planning firm providing a range of investment advice. Apply the value chain and cost behaviour classifications provided to the costs listed below. (More than one classification may be appropriate for each cost item.) Value chain classifications:

(a) research and development

(b) design

(c) production/delivery

(d) marketing

(e) customer support Cost behaviour classifications:

(f) fixed costs (g) variable costs (Identify cost driver) Costs: 1. Salary of the financial planning consultant who provides investment advice to retirees. 2. Salary of a graduate employed to investigate and assist with developing new financial planning products. 3. Wages for a casual receptionist hired through a temp agency. 4. Costs of advertising financial planning products. 5. Cost of telephone calls. These are primarily follow-up calls to superannuation clients. 6. Depreciation on photocopiers used in the provision of all services. 7. Cost of stationery used in preparing hard copy financial plans for clients. 8. Salaries of staff who are directly involved in preparing financial plans for clients. 9. Depreciation on office computer equipment used in providing all WealthSmart services.