Classify each of the cost items (a-h) into one of the business functions of the value chain Cost Item Value Chain Business Function 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 Customer Service Customer Service or Marketing Design Design or Research and Development Distribution Distribution or Production Marketing Production Research and Development ability to interconnect with other computers Purchase of competitors' products for testing against potential Dell products f. g. Payment to business magazine for running Dell advertisements h. Cost of cartridges purchased from outside supplier to be used with Dell printers

Explanation:

a)In this process, the power, electricity, water, etc consumed by the Production department are assembled.

b)In this department, the products are processed and shipped to the retail customers. The costs required for shipping the Latitude line of products comes under the Distribution department.

c)The activities like planning, designing, white box and black box testing are done in the Design process of a product.

d. Salary of computer scientist working on the next generation of servers related to Development.

e. Cost of Dell employees' visit to a major customer to demonstrate Dell?s ability to interconnect with other computers related to Customer Service or Marketing.

f)The cost required for testing the products comes under the Research and development.

g)Marketing department includes the costs of market research, selling the products and other business costs.

h)Purchasing the cartridges from the external suppliers comes under the production department.

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