1 Unit One: Solution Key to Sample Problems1-18 Value chain and customer expectations.1. Design2. Marketing3. Customer service4. Research and development5. Marketing6. Production7. Marketing8. Distribution2-16 Classification of costs, service sector. Cost object: Each individual focus groupCost variability: With respect to the number of focus groupsThere may be some debate over classifications of individual items, especially with regard to cost variability.Cost ItemD or IV or FA B C D E F GHD II I D I DIV F Va F V FV Vba Some students will note that phone call costs are variable when each call has a separate charge. It may be a fixed cost if Consumer Focus has a flat monthly charge fora line, irrespective of the amount of usage.b Gasoline costs are likely to vary with the number of focus groups. However, vehicles likely serve multiple purposes, and detailed records may be required to examine howcosts vary with changes in one of the many purposes served.