Final SCM Paper g5 1

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STRATEGIC COST MANAGEMENT PAPER

Second Semester SY 2022-2023
APPLE INCORPORATION
SUBMITTED BY:
MARCELLANA, DIANA MARIE G. 21-55635

MATANGUIHAN, CATRINA PAULEEN C. 21-53527
RAMOS, SHIELA MAE M. 21-55887
SOLOMON, GRACIELA VIJANNE G. 21-55086
TAMAYOSA, HANNAH SHANE A. 21-55772
TELERON, KATHLEN V. 21-59897
TUMAMBING, JESZ CHRISTIAN D. 21-57518
SUBMITTED TO:
MRS. JOCELYN AMON
MAY 2023
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
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TABLE OF CONTENTS
I. INTRODUCTION…………………………………………………………..……………………….. 1
a. About the Company
II. DISCUSSION……………………………………………………………..…………………………… 3
a. Strategic Management Philosophies Used by the

Company………………………………………………………..………….. 3
i. Discussion/Evaluation/Analysis
b. Cost Management Techniques Adopted by the

Company……………………………………………………………..…….. 4
i. Discussion/Evaluation/Analysis
III. CONCLUSION…………………………………………………………………………………..….. 7
a. Proposed solution or changes……………………………………………………….. 7
b. Recommendation………………………….………………………………………………10
IV. REFERENCES………………………………………………………………………………………. 13
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APPLE Inc.
I. INTRODUCTION
Rivalry in the technological industry continuously occurs as one technology
substitutes another for a particular market. Starting with the small innovations
before that had an impact on businesses and caused them to transform into what it
is today. As the world advances to modernization, Apple Incorporation is one of the
companies that can keep up with the tough competition in the industry for the long
run. Apple Inc. is a global technology leader known for its innovative products,
premium pricing strategy, and iconic brand. To provide a starting point, Apple Inc. is
a multinational technology company based in Cupertino, California. The company
designs develop, and sells consumer electronics, computer software, and online
services. Apple is well-known for its innovative products, sleek designs, and easy-to-
use interfaces. The company has a reputation for propelling the technology industry
forward, and its products are in high demand all over the world. Apple's financial
success is also significant, with the company consistently ranking among the world's
most valuable companies.
For the record of history, Apple Computer, Inc. was founded on April 1, 1976,
by college dropouts Steve Jobs and Steve Wozniak, and Ronald Wayne to develop
and sell Wozniak's Apple I personal computer. It was incorporated by Jobs and
Wozniak as Apple Computer, Inc. in 1977. The company's second computer, the
Apple II, became a best seller and one of the first mass-produced microcomputers.
Apple went public in 1980 with instant financial success. The company developed
computers featuring innovative graphical user interfaces, including the 1984 original
Macintosh, announced that year in a critically acclaimed advertisement called 1984.
By 1985, the high cost of its products, and power struggles between executives,
caused problems. Wozniak stepped back from Apple and pursued other ventures,
while Jobs resigned and founded NeXT, taking some Apple employees with him.
As the market for personal computers expanded and evolved throughout the
1990s, Apple lost considerable market share to the lower-priced duopoly of the
Microsoft Windows operating system on Intel-powered PC clones (also known as
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"Wintel"). In 1997, weeks away from bankruptcy, the company bought NeXT to
resolve Apple's unsuccessful operating system strategy and entice Jobs back to the
company. Over the next decade, Jobs guided Apple back to profitability through
several tactics including introducing the iMac, iPod, iPhone, and iPad to critical
acclaim, launching the "Think Different" campaign and other memorable advertising
campaigns, opening the Apple Store retail chain, and acquiring numerous companies
to broaden the company's product portfolio. When Jobs resigned in 2011 for health
reasons and died two months later, he was succeeded as CEO by Tim Cook.
Apple became the first publicly traded U.S. company to be valued at over $1
trillion in August 2018, then at $2 trillion in August 2020, and at $3 trillion in January
2022. As of April 2023, it was valued at around $2.6 trillion. The company receives
criticism regarding the labor practices of its contractors, its environmental practices,
and its business ethics, including anti-competitive practices and materials sourcing.
Nevertheless, the company has a large following and enjoys a high level of brand
loyalty. It has also been consistently ranked as one of the world's most valuable
brands.
For instance, in the recent past, Apple has been widely known for its digital
entertainment devices which are widely used worldwide. It has introduced a wide
range of entertainment devices, which have recorded a high level of performance.
Apple's hardware products include the iPhone, iPad, Mac, Apple Watch, AirPods, and
Apple TV, while its software offerings include the iOS and macOS operating systems,
iTunes, and the App Store. Additionally, the company offers online services such as
iCloud, Apple Music, Apple TV, and Apple Arcade. The company also has adequate
financial resources, which have supported ongoing research activities and allowed
the organization to maintain a high level of innovation. Apple Inc. has developed a
good reputation for producing high-quality products as a result of these priorities,
attracting many customers. The market has recently changed drastically. More
competitors are entering the industry, which has resulted in risky price wars. To
address this issue, Apple Inc has decided to expand its market to boost sales.
Apple Inc., like other businesses, has a mission and vision statement that
outlines how the organization plans to achieve its short and long-term goals. Apple’s
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mission states “To bring the best user experience through innovative hardware,
software, and services.” They highlight the company’s commitment to offering the
best products and services to meet each of its customer’s unique needs, while
Apple’s vision states “To make the best products on earth and to leave the world
better than we found it.” The entity’s vision statement guides the company’s
decision-making processes, strategic management, and operations. It ensures each
decision takes the company closer to realizing its mission and goals.
Every organization requires an efficient strategic management plan due to

the increased level of market competition, which has significantly increased in the
modern world. Strategic management enables an organization to easily achieve both
long-term and short-term objectives. Hence, Apple Inc. has developed highly
effective strategic management practices which enabled the company to maintain its
high level of performance.
II. DISCUSSION
This section discusses the strategic management philosophies and cost-
management techniques used by Apple Inc. To achieve its objectives, the company
has implemented strategic management philosophies, a Just-In-Time philosophy,
and methods for cost reduction that have assisted the company in maintaining a
strong market position.
A. Strategic Management Philosophies Used by the Company

Apple Inc. has employed various strategic management philosophies
throughout its history to maintain its competitive edge and sustain its growth.
Thereupon, Apple Inc. uses the Just-in-Time inventory system as part of its inventory
strategy to boost output, product quality, and sales while lowering labor costs and
storage requirements. The company can use it to buy materials just when they're
needed to meet client demand.
The just-in-time inventory system (JIT) is an operations management

technique that involves ordering raw materials and goods and only receiving them
when necessary to keep the production process moving and satisfy actual customer
demand. In other words, no extra stock is ordered, and it should arrive exactly in
time for manufacturers to use it in their manufacturing process.
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Utilizing JIT, Apple has successfully implemented the JIT inventory system to
precisely balance scheduled material so it arrives when needed at the right moment
(usually during large product releases). Apple's inventory has been cut to the
absolute minimum. The JIT inventory strategy has both benefits and drawbacks. JIT
has the advantage of allowing the company to invest in research and development
instead of purchasing inventory to meet anticipated consumer demand. The
availability of space is another benefit, which may contribute to a higher return on
investment. Better market control since the corporation can produce more goods in
response to demand while producing less of the things that aren't selling well.
However, as inventory is kept at a minimum level, there is less tolerance for

error, making rework challenging in practice, and there is a danger that you won't be
able to meet an unforeseen spike in demand for units since there won't be any
stored inventory to fill the order. The JIT inventory method is difficult to deploy and
runs the danger of a production stoppage that results in losses.
On the other hand, the Just-in-Time (JIT) philosophy can play a significant role
in helping Apple Inc. gain a competitive advantage in several ways. JIT helps
minimize inventory levels, reduce waste, and optimize production processes. This, in
turn, can lead to lower production costs for Apple, which can be passed on to
customers in the form of lower prices. By reducing costs, Apple can offer more
competitive pricing than its rivals, which can help it gain a larger market share. At the
same time, JIT emphasizes the importance of producing goods of high quality to
meet customer needs. By focusing on quality, Apple can differentiate its products
from those of competitors and build a strong brand reputation. This can result in
higher customer loyalty and increased market share.
In summary, the JIT philosophy can help Apple gain a competitive advantage
by reducing costs, improving quality, enabling faster response to market changes,
and building strong relationships with suppliers.
B. Cost Management Techniques Adopted by the Company

Apple Inc. has used a variety of cost management techniques over the years
to improve efficiency, reduce waste, and control costs. Making decisions about cost
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management strategies, any implementation will have either a beneficial or a

downside impact on the company’s performance that will affect the company’s
objectives. Since each company has different conditions wherein every practice and
procedure will need cost management approaches. Apple Inc. is one of the
companies that employ cost management approaches such as Cost - Volume - Profit
(CVP) and Activity-Based Costing (ABC). Whenever sales of Apple Inc. fall, most of the
expenditures required to produce income will remain unchanged.
Cost-Volume-Profit
Cost - Volume - Profit analysis is an approach that evaluates the effect of
shifted levels of costs and volume on operational results. The accounting tool that
the company uses to make decisions about product selection, strategy, marketing,
and manufacturing facility is the CVP, which is the key aspect in terms of the
decision-making process. The company can use the contribution margin to
determine how much a change in sales affects the company's earnings.
Given that Apple Inc. produces a variety of items, not all of them are offered
at the same price or have the same costs connected with them. As a result, the
break-even threshold is determined by the mix of items offered. Furthermore, when
the product mix changes, so does the break-even point. When demand changes and
buyers buy more low-margin items, the break-even point rises. If customers buy
more high-margin items, the break-even point decreases. Simply said, the break-
even threshold varies depending on the sales mix. The break-even point is the
moment at which the income generated by an organization equals the costs incurred
by the organization. At the break-even threshold, the firm's contribution margin
might potentially be equal to its costs.
Perhaps, Apple Inc. benefits greatly from the use of CVP analysis and activity-
based cost management strategies. One of the primary advantages that Apple gains
from employing these methods is an increase in cost accuracy. CVP, or cost-volume-
profit analysis, assists the organization in determining how changes in costs and
volume affect operating expenditures and net profits. CVP operates by contrasting
different connections, such as the cost of running and producing items, the volume
of goods sold, and profits made from the sale of those commodities. This provides
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Apple with Inc. a clear picture of the profitability of their products or services by
categorizing expenses as fixed vs variable.
Activity-Based Costing (ABC)

Activity-Based Costing is a costing method that is according to the actual
consumption by each activity, identifies activities in an organization, and assigns the
cost of each activity to all products and services. It also assigns costs to those
operations that are the real cause of the overhead costs in the organization. The
company uses the activity-based costing method to value its products. This costing
system is ideal for complex environments for Apple Inc., for the reason that there
are numerous machineries, produced merchandise, and interwoven processes that
make it complex to sort out.
The management receives the essential data from activity-based costing

which is used for planning and decision-making. Apple Inc. employed this approach
to aid in
the pricing of its products. In addition, it assists the entity to choose the best line of
products that different products can use and to identify the main steps in the
manufacturing process. Apple Inc. has distinct cost groups for each merchandise line
manufactured because costs tend to arise at this stage of activity-based costing.
Moreover, by employing activity-based costing, Apple Inc. may allocate expenses
exclusively to items that require the activity for manufacturing. This allows the firm
to avoid assigning extraneous expenses to the manufacturing of a product or service.
This form of pricing is also used.
Apple Inc. is now able to strengthen its business procedures. Activity-based

costing accounts for costs in the same way that manufacturing is conducted,
allowing Apple Inc. to better understand where the costs are. Overhead expenses
are used. This data can assist the organization in identifying useless items and
excessive expenses. This allows the firm to make better use of its resources. As a
result, Apple Inc.'s usage of CVP analysis and the ABC system as cost management
tools helps to enhance overall product and service quality by continuously delivering
data regarding production and cost concerns that need to be synchronized.
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III. CONCLUSION
Apple Inc. has been successful in implementing strategic management
philosophies and cost management techniques that have assisted the company in
meeting its goals. The company's adoption of the Just-In-Time philosophy has
allowed it to reduce inventory and storage and maintenance costs, while its focus on
product design optimization has improved efficiency and reduced waste.
On the contrary, while the strategic management philosophies and cost

management techniques adopted by Apple Inc. have been effective in helping the
company achieve its objectives, there are some potential drawbacks, in terms of its
supply chain, and high research and development costs. Perhaps, based on the
information gathered a few potential changes or solutions may be proposed for
Apple Inc. Take note that any proposed changes should be carefully evaluated to
ensure they align with the company's overall strategy and objectives.
A. Proposed solution or changes

Supply chain issues
A supply chain is a network of individuals and businesses involved in the
creation and delivery of a product to the consumer. The chain starts with the raw
material producers and ends when the van delivers the finished product to the end
user. Also, it performs product development, marketing, operations, distribution,
finance, and customer service. Lowering costs and shortening the production cycle
are the results of effective supply chain management. On the other hand, supply
chain management is the management of the flow of goods and services, which
includes all processes that transform raw materials into finished products. The five
most important aspects of SCM are developing a strategy, sourcing raw materials,
production, distribution, and returns. Apple's global supply chain is complex and
involves many suppliers and manufacturing partners. This can make it difficult for
the company to maintain consistent product quality and availability, and can also
leave the company vulnerable to disruptions in the supply chain due to natural
disasters, political instability, or other factors. Apple’s supply chain has been like the
others, but they use different suppliers and have distinct evaluation approaches
according to the publication of Benjabutr (2020). Furthermore, Apple obtains raw
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materials from a variety of sources and works with a variety of segment suppliers.
They only have a few
organizations that supply them with components, and they are spread across the
globe.
Meanwhile, Apple, unlike its competitors, has a low share turnover when
shareholders sell their stock because prices tend to be about bearings and
competitors, it is possible to save as little inventory as possible. Because unexpected
measurements from competitors or other developments can cause significant
changes and suddenly reduce the value of goods in inventory, mobile phone
manufacturers cannot store large quantities of goods in inventory. Apple sources its
products and components from the United States, China, India, Europe, and other
Asian countries.
In line with this, the company may prioritize the following; first is the supply
chain optimization by working closely with suppliers, implementing advanced
logistics systems, and incorporating sustainability measures. Then, it values its
employees and invests in their development through training and opportunities for
advancement. Lastly, it prioritizes its customer support and services, like actively
listening to their feedback and refining support processes to provide exceptional
experiences. Apple's dedication to continuous improvement in these areas reflects
the company's commitment to providing cutting-edge technology and an
unparalleled user experience.
For instance, by diversifying the supplier base, Apple can reduce the risk of
supply chain disruptions by working with multiple suppliers and manufacturers for
each component or product. This will ensure that if one supplier is unable to deliver,
the company can still source the required components from another supplier.
Moreover, the company can build long-term partnerships with its suppliers and
manufacturers, based on trust, collaboration, and shared values. This will help to
create a more stable and resilient supply chain and reduce the risk of disruptions.
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Overall, these solutions can help Apple to improve the resilience and
reliability of its supply chain and reduce the risk of disruptions due to natural
disasters, political instability, or other factors.
High research and development costs

Amid the increasing competition in the technology sector, Apple maintains its
leadership position by releasing innovative products and services to its loyal
customer base. Notably, Apple's market position can be attributed to its innovative
strategy, which continues to receive significant budgetary support. Since the
company is widely recognized for its unwavering commitment to continuous
improvement, which is deeply ingrained in the company's culture and is evident in its
practices across various areas. Apple continually strives to enhance its products, user
experience, supply chain, environmental sustainability, employee development, and
customer support. Apple invests heavily in research and development to maintain its
competitive edge, which can result in high costs.
Data acquired and calculated by Finbold on December 8 indicates that

between 2018 and 2022, Apple spent $97.37 billion on Research and Development
(R&D). Between the five years, Apple’s spending on the segment surged 84.33%
from $14.24 billion in 2018 to $26.25 billion in 2022. Through significant investments
in research and development, Apple pushes the boundaries of technology to deliver
innovative products that surpass previous iterations. They actively gather user
feedback, conduct usability studies, and analyze user behavior to refine their
products' interfaces, functionalities, and overall user experience. Apple's design
teams tirelessly work to create visually stunning products with impeccable
functionality.
This investment can be a disadvantage if a product or technology fails to

meet consumer demand, resulting in a loss of revenue and profitability. Also, even
after investing heavily in innovation, Apple can suffer from poor performance losses.
However, if the research projects are successful, the investment may begin to pay
off. Notably, Apple has not escaped the effects of raging inflation, supply chain
issues, and the long-term effects of the Covid-19 pandemic. In general, Apple's R&D
spending does not guarantee profitability or strong stock performance. In relation to
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this, Apple could look for ways to improve its R&D processes, such as; strengthening
team member collaboration and communication, integrating repetitive tasks, and
reducing bureaucracy. This could aid in improving efficiency and lowering costs.
Rather than concentrating on large, costly R&D projects, focus on smaller,
incremental improvements to its existing products. Apple may consider this as this
could aid in
lowering R&D costs while still providing meaningful product enhancements and
staying current with market trends. Furthermore, evaluating its R&D projects and
prioritizing those that have the highest potential for success and profitability. This
would help the company to focus resources on projects that are most likely to
deliver a return on investment.
In conclusion, manufacturing that is done just in time is very effective.

Though Apple's strategies have some potential drawbacks, the company has been
successful in maintaining a strong competitive position in the market. Apple can
continue to improve its operations and maintain its position as a technology industry
leader by carefully evaluating the potential benefits and risks of these strategies. By
implementing these changes and solutions, Apple can improve its operations,
strengthen its competitive position, and meet its customers' evolving needs and
expectations.
B. RECOMMENDATIONS
According to the preceding discussion, Apple Inc has demonstrated
commendable performance in the computer industry. The company has also
managed to maintain continuous innovation. This has aided it in differentiating its
products. However, the high level of competition in the industry has exposed the
company to significant risk. The issues identified have also posed a threat to its
financial stability. As a result, the company must consider devising the necessary
measures to eliminate these threats.
To start with, diversifying the supplier base is a strategic approach that can
help Apple reduce risks, ensure a stable supply chain, and potentially lower costs.
Here are some proposed recommendations by the researchers to effectively
diversify Apple's supplier base.
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The first step is to seek out suppliers who share Apple's values and are
committed to sustainability and social responsibility. By thoroughly evaluating
potential new suppliers, and assessing their ability to meet quality standards,
delivery deadlines, and budgetary constraints. Moreover, robust Risk mitigation
strategies must be developed to address the potential challenges of diversifying the
supplier
base. This includes maintaining buffer stocks of critical components, developing

contingency plans for supply disruptions, and regularly monitoring supplier
performance. Additionally, implementing a robust supplier performance monitoring
system, which regularly evaluates and assesses suppliers based on key metrics such
as quality, on-time delivery, responsiveness, and overall partnership performance.
This evaluation helps ensure that suppliers continue to meet Apple's expectations
and drive continuous improvement. Since long-term commitments can provide
suppliers with stability and encourage them to invest in capacity expansion and
quality improvements.
For instance, by diversifying its supplier base, Apple can enhance supply chain
resilience, mitigate risks, foster competition among suppliers, and potentially
achieve cost savings. However, it is important to strike a balance between
diversification and maintaining strong relationships with key suppliers who provide
critical components or offer unique value propositions.
On the other hand, Apple, as one of the world's leading technology

companies, has long been known for heavily investing in R&D. While Apple's high
R&D costs may appear intimidating, they are a critical component of the company's
long-term growth and innovation strategy. In relation to this, the researchers
proposed the implementation of a Life cycle costing, a useful tool for Apple to
reduce its research and development costs by providing a holistic view of the cost
implications of different design and development decisions over the entire life cycle
of its products. As well as Kaizen costing, a continuous improvement process that
involves reducing costs through small incremental changes. The basic idea is to
constantly improve the production process by identifying areas where costs can be
reduced and then making changes to reduce those costs. Life cycle costing can be
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applied by considering the cost implications of different design and development

decisions over the entire life cycle of the product. By applying life cycle costing to its
research and development process, Apple can identify areas where it can reduce
costs without sacrificing quality or innovation.
In addition, Kaizen costing can be applied to identify areas where costs can be
reduced. For example, it can involve reviewing the research and development
process
to identify areas where waste can be eliminated, such as reducing unnecessary

research activities or optimizing the use of resources. Apple can also use Kaizen
costing to improve the efficiency of the research and development process. This can
involve setting up small teams to identify areas where improvements can be made,
such as streamlining the research and development process, using more efficient
tools and technology, and reducing the time and cost of developing new products.
Overall, applying Life cycle costing and Kaizen costing can help Apple to
reduce its research and development costs by continuously improving the process
and eliminating waste, while still maintaining the quality and innovation that Apple is
known for. Stated below is the possible application of the said techniques to reduce
the cost of Apple Inc. in a valuable manner. The Plan-Do-Check-ACT.
PLAN: To reduce the company’s research and development costs by continuously

improving the process and eliminating waste while maintaining the quality and
innovation of its products.
DO: The application of Life cycle costing and Kaizen costing
CHECK: By measuring its impact on the cost reduction and improvement of product
quality through the specific indicators; Reduction in costs, Improvement in product
quality, and Employee engagement
ACT: For Apple to innovate its products and services, it will have to continue
investing in research & development. By investing significantly in R&D, Apple has
been able to advance the frontiers of technology, introduce innovative products
onto the market as well as attract new customers and generate revenue.
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To summarize, while Apple's high R&D costs may appear significant, they are
critical to the company's strategy for growth, innovation, and maintaining a
competitive edge. Apple can drive technological advancements, improve user
experiences, strengthen its ecosystem, and contribute to sustainability by investing
significantly in R&D. These efforts ultimately benefit both the company and its
customers, ensuring Apple's continued success in the ever-changing technology
landscape. Apple must continuously invest in R&D to develop cutting-edge products
and services in order to stay ahead of the competition and maintain its market
position. Also, the company may push the boundaries of technology and bring
innovative products to market by allocating significant resources to R&D, attracting

customers, and generating revenue. Furthermore, Apple's R&D investments
contribute to the company's ecosystem of devices and services. This level of
integration necessitates significant R&D efforts to create compatible technologies,
optimize performance, and ensure seamless interoperability between Apple devices.
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REFERENCES
Chaudhuri, S. & Chakraborty, A. (2008). Just-in-time Global Economy: A Case of
Apple.
Retrieved from https://www.thecasecentre.org/products/view?id=81984
Jason, G. (2022). Just in Time Inventory System - Explained. Retrieved
fromhttps://thebusinessprofessor.com/en_US/mgmt-operations/just-in-time-
jit inventory-system
Lopatto, E. (2020). Tim Cook’s trick for making iPhones is now at risk from the
pandemic. Retrieved From https://www.theverge.com/2020/3/13/21177024/apple
just-in-time manufacturing-china-coronavirus-supply-chain
IvyPanda. (2022, July 31). Apple Strategic Management: Planning and Management
Process — Apple Company Essay. Retrieved from
https://ivypanda.com/essays/strategic-management-apple-company/
Stryjak, J. (2022). Apple adds to the growing industry sustainability drive. Retrieved
from https://www.counterpointresearch.com/apple-adds-to-growing-industry-
sustainability-drive/
Baltrusaitis, J. (2022). Apple spent almost $100 billion innovating its products over
the last 5 years. Retrieved from https://finbold.com/apple-spent-almost-100-
billion-innovating-its-products-over-the-last-5-years/
Dzulfaisal, H. (2022). Strategic Management of Apple Inc. Retrieved from
https://www.grin.com/document/1222692 "Apple Inc. Operations
Management: 10 Decisions, Productivity" by Panmore Institute (2019) – This
case study discusses Apple's operations management, including its focus on
quality and efficiency. https://panmore.com/apple-inc-operations-
management-10-decisions-areas-productivity
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Niu, B., Zhang, J., & Zhang, Y. (2016). Apple's Supply Chain Management. In 2016
International Conference on Information Management, Innovation
Management, and Industrial Engineering (pp.90-94). IEEE.
https://www.academia.edu/25113531/Apple_Inc_Strategic_Management_Imp
lementation
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Pablo Borbon Campus

STRATEGIC COST MANAGEMENT PAPER

MARCELLANA, DIANA MARIE G. 21-55635

a. About the Company

a. Strategic Management Philosophies Used by the

b. Cost Management Techniques Adopted by the

a. Proposed solution or changes……………………………………………………….. 7

Every organization requires an efficient strategic management plan due to

A. Strategic Management Philosophies Used by the Company

The just-in-time inventory system (JIT) is an operations management

However, as inventory is kept at a minimum level, there is less tolerance for

B. Cost Management Techniques Adopted by the Company

management strategies, any implementation will have either a beneficial or a

Activity-Based Costing (ABC)

The management receives the essential data from activity-based costing

Apple Inc. is now able to strengthen its business procedures. Activity-based

On the contrary, while the strategic management philosophies and cost

A. Proposed solution or changes

High research and development costs

Data acquired and calculated by Finbold on December 8 indicates that

This investment can be a disadvantage if a product or technology fails to

In conclusion, manufacturing that is done just in time is very effective.

base. This includes maintaining buffer stocks of critical components, developing

On the other hand, Apple, as one of the world's leading technology

applied by considering the cost implications of different design and development

to identify areas where waste can be eliminated, such as reducing unnecessary

PLAN: To reduce the company’s research and development costs by continuously

innovative products to market by allocating significant resources to R&D, attracting

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