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This post provides the solution for cost acct. exercise 1-15

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Value Chain and Classification of Costs (L.O. I):
Apple, Inc. incurs many types of costs in its operations.
For each cost in the following table, identify the stage in the value chain where this cost is incurred.
Cost Stage In the Value Chain
Programmer costs for a new operating system
1 Design
Costs to ship computers to customers
2 Marketing
Call center costs for support calls
3 Distribution
Salaries for employees working on new product designs
4 Research & Development
Costs to purchase advertising at university stores
5 Customer Service
Costs of memory chips to make computers
6 Production


Solution Summary

The solution provides the complete answers for cost accounting exercise 1-15, regarding Apple Inc. and their types of costs. (L.O. I). This solution is written based on 25+ years of professional accounting experience.