Dell Computer incurs the following costs: i. Utility costs for the plant assembling the Latitude computer line
Question:
Dell Computer incurs the following costs:
i. Utility costs for the plant assembling the Latitude computer line of products
ii. Distribution costs for shipping the Latitude line of products to a retail chain
iii. Payment to David Newbury Designs for design of the XPS 2-in-1 laptop
iv. Salary of computer scientist working on the next generation of servers
v. Cost of Dell employees' visit to a major customer to demonstrate Dell's ability to interconnect with other computers
vi. Purchase of competitors' products for testing against potential Dell products
vii. Payment to business magazine for running Dell advertisements
viii. Cost of cartridges purchased from outside supplier to be used with Dell printers
Requirement
Classify each of the cost items (i-viii) into one of the business functions of the value chain.
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer:
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan