Purchase Solution

Relevant and non-relevant costs for Apple Inc.

Not what you're looking for?

Ask Custom Question

For my assignment I am using APPLE INC. My prior assignment was on BREAK-EVEN ANALYSIS and I used APPLE TV. I need assistance with the following:

Identify a decision that has recently been made or will be made in the near future at APPLE INC. Identify two relevant and two non-relevant costs in the decision.

If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.

The report should include

- Name of activity
- activity and time period used
- the inputs you used
- your results
- any implicatons from your results

I used the following information for the sales of 1 million Apple TV's in a year:

Estimated Costs:
Material Cost per unit $90
Labor Cost per Unit $110
Fixed overhead for the year $10,000,000
Sales revenue per unit $250

Please provide specific numerical information

Purchase this Solution

Solution Summary

This explains the concept of relevant costs and its application in the organization

Solution Preview

Activity and time period used
The activity we have decided is of international expansion and to expand further into Indian market. This is because India i one of the fastest growing markets in world. This growth proves to be a large opportunity for multinationals.
Time period is within in one year. (Upto the year 2009)

Relevant costs
An item is relevant if it is different between or among decision alternatives. That item is not relevant if it is the same between or among decision alternatives.
Here are some follow-up generalizations. As with all generalizations, there will always be exceptions.
1. In general, sunk costs are not relevant because they cannot be avoided in a decision. They have already been incurred or are committed to be incurred in the future. Remember that committed costs are a form of sunk costs.
2. In general, historical costs are not relevant because they will be the same regardless of ...

Purchase this Solution


Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Operations Management

This quiz tests a student's knowledge about Operations Management

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking