1.)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 26, 2015, 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