Value chain and classification of costs computer company Compan
Value chain and classification of costs computer company, Company Computer incurs the following costs:
a. Electricity costs for the plant assembling the Presario computer line of products
b. Transportation costs for shipping the Presario line of products to a retail chain
c. Payments to David Kelly Designs for design of the Armada Notebook
d. Salary of computer scientist working on the next generation of minicomputers
e. Cost of Compaq employees’ visit to a major customer to demonstrate Compaq’s ability to interconnect with other computers
f. Purchase of competitors’ products for testing against potential Compaq products
g. Payments to television network for running Compaq advertisements
h. Cost of cables purchased form outside supplier to be used with Compaq printers.
Classify each of the cost items (a-h as one of the business functions of the value chain shown in Exhibit 1-2 (p.7).

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