Question

Selected costs related to Apple’s iPhone are listed below. Classify each cost as either direct materials, direct labor, factory overhead, selling expenses, or general and administrative expenses.

Answer 1

The costs related to Apple's iPhone can be classified into different categories: direct materials, direct labor, factory overhead, selling expenses, or general and administrative expenses.

Step-by-step explanation:

The costs related to Apple's iPhone can be classified into different categories:

• Direct materials: These costs include the components and materials used in the production of the iPhone, such as the touchscreen, chips, and batteries.
• Direct labor: These costs include the wages and salaries of the workers involved in assembling the iPhone.
• Factory overhead: This includes indirect costs incurred during the production process, such as rent, utilities, and depreciation of manufacturing equipment.
• Selling expenses: These costs are associated with marketing and selling the iPhone, such as advertising, sales commissions, and distribution costs.
• General and administrative expenses: These costs include the administrative and management expenses of Apple, such as salaries of executives, office supplies, and legal fees.