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.

Distribution
The 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...
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Related Book For  book-img-for-question

Horngrens Cost Accounting A Managerial Emphasis

ISBN: 978-0134475585

16th edition

Authors: Srikant M. Datar, Madhav V. Rajan

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