Made in China Where does all that profit come from? Take the iPhone, for example.
Apple Inc is regarded as one of the most valuable companies in the world. Although the company targets the middle and upper class market segment with its products, it has increasingly registered impressive profitability every years and with each introduction of new products; particularly the iPhone.
The company is located in California, and was started in a garage by the two guys who dropped out of college. The company was incorporated in the year and was named Apple computer Inc which later changed to Apple Inc Linzmayer, Apple manufactures designs, and markets high tech computers, portable digital music players, software, mobile phones, laptops computers, servers, and ipads.
Apple Inc has particularly become successful through products such as iPhones, iPad tablets, Mactosh computers, and portable iPod media players. Apple inc costing process produced by Apple are sold worldwide through the internet, retail stores, and direct sales.
Additionally, Apple Inc sells its products via wholesales, cellular network carriers; value added sales and retailers in most countries. Innovation, creativity and design are the main reasons that have driven the company to the current level of prosperity. In apple launched apple I personal computer, which was followed closely by Apple II which was very successful.
Mactosh was introduced in style in the year Mactosh was a high quality product and it became an instant hit in the market. The Mactosh computer had a nice graphical user interface with a mouse.
The graphical user interface set the standard for other PC makers. Subsequently, iMac computer was introduced in after the company had been restructured to focus on innovation the previous year. Apple Inc was undergoing a moment of high level innovation.
Soon, the iPod was introduced in the which was followed by an online music store. Apple also introduced a smart phone — the iPhone in which was later followed by the iPad in The company has continued to thrive and excel through the high quality products it sells and particularly the iPhones and iPads which have totally revolutionized the world of technology through Smartphone and portable computers.
Apple Inc is not an exception in this regard. Most of the costs Apple Inc needs to generate revenues are not reduced rapidly when the sales of their products declines. A fixed cost structure apple Inc uses normally generate high profits when their products are being bought in many number more during the holiday shopping season.
But during normal period the company can suffer the operating losses. This is very normal. Apple Inc makes some assumptions based in the cost volume profit analysis CVP. Also their product cost is linear and they divide them to fix and variable costs.
Their variable elements are constant per each unit, while the fixed elements are constant totally in a range which is relevant Drury, Another assumption apple Inc makes is that the selling price of their products will remain constant.
This is because the price of that product will not change when the volume changes. They continue producing the same number of units which equals the number of units they sale.
The company does not increase the number of sales more than the company has never experienced. When the company wants to increase revenue it adjusts the model of their products, this will lead to increase in the selling price of the product, sales mix, and the fixed costs.
Although, this has a disadvantages as the cost volume and profit assumptions will be violated.Feb 25, · The statement is accounting-speak for, "we carry inventory at the lower of cost or market." I'm not implying that Apple will or won't need to take a write down for the inventory, as I .
ABC (activity based costing) and standard costing in the Apple Inc.
Benefits of both types of costing will be analyzed. Factors influencing the standard costs and ABC costs will be examined It believes in continuous investment in the process of.
ph-vs.com APPLE INC. RESEARCH PAPER 5 APPLE INC. RESEARCH PAPER Jan 24, · Apple New Product Process (ANPP).
Once the design of the product has begun, the ANPP is put into action. This is a document that sets out every step in . Apple is spread out in a number of divisions or departments including marketing, finance, and legal, retail, corporate, applications, facilities, supply chain, R&D and many others (“Apple 5/5(1).
Process Costing. What Is the Meaning of Operational Efficiency? Definitions of Controllable & Uncontrollable Costs as Related to HR Decisions Definition of a Proposal Request. Editor's Picks. Nov 03, · Cost Accounting and Management Decisions of Apple Inc Essay: Introduction Apple Inc is a US manufacturing high tech company founded by Steve Jobs and Steve Wozniak in the year Apple Inc is regarded as one of the most valuable companies in the world.