Taco Bell, a fast-food restaurant, incurs the following costs:
a. Cost of oil for the deep fryer
b. Wages of the counter help who give customers the food they order
c. Cost of tortillas and lettuce
d. Cost of salsa packets given away with customer orders
e. Cost of the posters indicating the special “two tacos for $2.00”
f. Costs of corporate sponsorship of the World Series
g. Salaries of the food specialists in the corporate test kitchen who create new menu items
h. Cost of “to-go” bags requested by customers who could not finish their meals in the restaurant

Required

Classify each of the cost items (a–h) as one of the business functions of the value chain shown in Exhibit 1-2.

Transcribed Image Text:

EXHIBIT 1-2 Research and Development Different Parts of the Value Chain Design of Products and Processes Administration Production Marketing Distribution Customer Service