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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.
Required:
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

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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.

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