Question

Suppose Radio Shack incurred the following costs at its Atlanta, Georgia, store:
Newspaper advertisements........................................................................... $ 5,100
Payment to consultant for advice on location of new store.......................... $ 2,900
Purchases of merchandise.............................................................................. $ 38,000
Freight- in........................................................................................................ $ 3,100 Salespeople’s salaries..................................................................................... $ 4,800
Depreciation expense on delivery trucks....................................................... $ 1,000
Research on whether store should sell satellite radio service........................ $ 300
Customer Complaint Department................................................................. $ 500
Rearranging store layout................................................................................ $ 850

Requirements
1. Classify each cost as to which category of the value chain it belongs ( R& D, Design, Purchases, Marketing, Distribution, or Customer Service).
2. Compute the total costs for each value chain category.
3. How much are the total inventoriable product costs?



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  • CreatedAugust 27, 2014
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