Form utility is created by

Form utility  is making a product more useful by changing its form.

Form utility is created by altering the physical characteristics of a product thereby increasing its usefulness(adding value) for the consumers.

So ideally it should be Manufacturing / operations who create the form utility.

As per the Business Dictionary, it is the process of increasing the attractiveness of a product to consumers or group of consumers by altering it's physical appearance.  In business context, form utility might involve making a product ready for consumption by converting it to a form that is more beneficial to consumers than the raw materials used to make it.

So option A - Operation function which would include marketing, research, and manufacturing would be my option.

The right option is A. Operation function.

Answer is Option . D. Distribution function

VALUE(V)  = UTILITY(U) / COST(C)

Fundamental building blocks described are Resource, Process and capabilty.

As per Porter1985 Law 

there are supportive activities and primary activities. in which utility exists in PA.

so my answer is ABD and C comes in supportive activities. 

from utility is created by

from utility is created by