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Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275 Exercise 18
Apple reports in notes to its financial statements that, in addition to its products sold, it includes the following costs (among others) in cost of sales: customer shipping and handling expenses and warranty expenses.
Required
1. Why do you believe Apple includes these costs in its cost of sales
2. What effect does this cost accounting policy for its cost of sales have on Apple's financial statements and any analysis of those statements Explain.
Fast Forward
3. Access Apple's financial statements for the years after September 28, 2013, from its website ( Apple.com ) or the SEC's EDGAR website ( SEC.gov ). Review its footnote relating to Summary of Significant Accounting Policies. Has Apple changed its policy with respect to what costs are included in the cost of sales Explain.
Required
1. Why do you believe Apple includes these costs in its cost of sales
2. What effect does this cost accounting policy for its cost of sales have on Apple's financial statements and any analysis of those statements Explain.
Fast Forward
3. Access Apple's financial statements for the years after September 28, 2013, from its website ( Apple.com ) or the SEC's EDGAR website ( SEC.gov ). Review its footnote relating to Summary of Significant Accounting Policies. Has Apple changed its policy with respect to what costs are included in the cost of sales Explain.
Explanation
Verified
Verified
1.
Cost of sales refers to the cost pert...
Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
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