Apple Inc.: The Company Analysis Of Apple Inc.

1649 Words7 Pages
The company that will be analyzed in this report is Apple Inc. Apple Inc. is a well- known name in the ambitious realm of top computer/electronic manufacturing companies.
Apple Inc. is currently a multinational corporation and has been manufacturing computers since 1976. However, being arguably the best in the business does not mean that all of the demanding work has come to a screeching halt.In this day and age, entities face increasing pressure to control costs and permit reliable supervision of resources. Apple Inc. is expected to afford services cost-effectively and provide business value while functioning under tense budgetary constraints. One way to contain costs is to implement a cost allocation practice, where Apple Inc.’s business units become directly liable for the services they consume.
Organizations are divided into many ways; the organization may be arranged by geographical position, product line, or function. Geographical divisions may be grouped by local area, state, region, country or continent. Product line divisions may be split depending on the functional divisions, including marketing, human resources, and finance.
Apple Inc. could best allocate costs to divisions, plants, departments, contracts, and /or products by determining which criteria are relevant and applicable when the time arises for cost allocation decisions to be made. Apple Inc.’s management should understand the purpose for a certain cost allocation and then select the suitable criteria to implement the allocation.Criteria that should be considered in cost allocation decisions include cause and effect, benefits received, and the ability to bear. Cause and effect and the benefits received criteria are frequently chosen for the vast majority of re...

... middle of paper ... also be acknowledged when performing variance analysis. Positive and negative correlations are vital in business planning. As an example, variance analysis might reveal that when sales for Iphones rise there is also a rise in the sales for Iphone cases. Solving technical issues with the Mac Note
Book might result in sales increases. This information might be used to transfer this success to other comparable products. An important prediction is business forecasting. It uses patterns of past business data to construct a philosophy about future performance.
Variance data are placed into context that allows the analyst to identify factors such as holidays or seasonal changes as a positive or negative variances. For example, the monthly pattern of sales of MacBook Pros over five years might identify a positive sales trend leading up to the beginning of the school year.
Open Document