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Cassify each of these costs according to its place in the

Suppose the cell phone manufacturer Plum Electronics provides the following information for its costs last month (in hundreds of thousands):

Salaries of telephone salespeople	$ 4	Transmitters	$ 58
Depreciation on plant and equipment	55	Rearrange production process to accommodate new robot	1
Exterior case for phone	8	Assembly - line workers' wages	9
Salaries of scientists who developed new model	11	Technical customer-support hotline	3
Delivery expense to customers via UPS	5	1-800 (toll-free)line for customer orders

Requirements

1. Classify each of these costs according to its place in the value chain (Hint : You should have at least one cost in each value chain function)

Production
R & D	Design of Products or Processes	Direct Materials	Direct Labor	Manufacturing Overhead	Marketing	Distribution	Customer Service

2. Compute the total costs for each value chain category

3. How much are the total inventoriable product costs?

4. How much are the total prime costs?

5. How much are the total conversion costs?

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Managerial Accounting: Cassify each of these costs according to its place in the

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Managerial Accounting: Cassify each of these costs according to its place in the

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