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1 - 1 7 VALUE CHAIN AND CLASSIFICATION OF COSTS, COMPUTER COMPANY. Dell Computer incurs the following costs:a . Utility costs for the plant assembling

1-17 VALUE CHAIN AND CLASSIFICATION OF COSTS, COMPUTER COMPANY.Dell Computer incurs the following costs:a. Utility costs for the plant assembling the Latitude computer line of productsb. Distribution costs for shipping the Latitude line of products to a retail chainc. Payment to David Newbury Designs for design of the XPS 2-in-1 laptopd. Salary of computer scientist working on the next generation of serverse. Cost of Dell employees visit to a major customer to demonstrate Dells productsf. Purchase of competitors products for testing against potential Dell productsg. Payment to business magazine for running Dell advertisementsh. Cost of cartridges purchased from outside supplier to be used with Dell printersRequiredClassify each of the cost items (ah) into one of the business functions of the value chain shown in Exhibit 1-2(page 5).

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