COST ACCOUNTING
16th Edition
ISBN: 9781323694008
Author: Horngren
Publisher: PEARSON C
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Textbook Question
Chapter 1, Problem 1.17E
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 FedEx courier service to deliver drugs to hospitals
Classify each of the cost items (a–h) as one of the business functions of the value chain shown in Figure 1-2 (page 5).
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Chapter 1 Solutions
COST ACCOUNTING
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