Apple and Google are competitors in the sales of electronic devices. Compare these companies' income statements and answer the following.
Required
1. Which company has a higher ratio of costs, defined as cost of goods sold plus total operating expenses, to revenues? Use the two most recent years' income statements from Appendix A. Show your analysis.
2. How might the use of activity-based costing help the less competitive company become more competitive?
3. Assume Apple is considering opening a new retail store. What are the activities associated with opening a new retail store?