Value chain and classification of costs, computer company. Dell Computer incurs the following costs:a. Utility costs for the plant assembling the Latitude computer line of productsb. Distribution costs for shipping the Latitude line of products to a retail chainc. Payment to David Newbury Designs for design of the XPS 2-in-1 laptopd. Salary of computer scientist working on the next generation of serverse. Cost of Dell employees’ visit to a major customer to demonstrate Dell’s ability to interconnect withother computersf. Purchase of competitors’ products for testing against potential Dell productsg. Payment to business magazine for running Dell advertisementsh. Cost of cartridges purchased from outside supplier to be used with Dell printers

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Value chain and classification of costs, computer company. Dell Computer incurs the following costs:
a. Utility costs for the plant assembling the Latitude computer line of products
b. Distribution costs for shipping the Latitude line of products to a retail chain
c. Payment to David Newbury Designs for design of the XPS 2-in-1 laptop
d. Salary of computer scientist working on the next generation of servers
e. Cost of Dell employees’ visit to a major customer to demonstrate Dell’s ability to interconnect with
other computers
f. Purchase of competitors’ products for testing against potential Dell products
g. Payment to business magazine for running Dell advertisements
h. Cost of cartridges purchased from outside supplier to be used with Dell printers

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