Choose a company that manufactures a specific product.

Instructions

Choose a company that manufactures a specific product. Then, answer the following questions based on assumptions and research conducted about the company and its product.

Describe the product that is being made and the company that makes it.
Explain the value chain activities that this product would go through from start to finish. Remember that a value chain describes the full range of activities necessary to create a product or service.
List and explain three costs that would be incurred in each of the business activities in the value chain.
Categorize and explain each cost you identified in the value chain as either a product cost or a period cost. Explain your reasoning.
Make a list of three different cost objects other than the product itself for the company you chose.
Specify a direct cost and an indirect cost for each of the three different cost objects in question. Discuss why you categorized them as direct or indirect.

Your assignment must consist of at least two pages, and you should include at least two references. One reference can be your textbook, and one should come from the CSU Online Library. Adhere to APA Style when creating citations and references for this assignment. APA formatting, however, is not necessary.

SAMPLE SOLUTION:

The company chosen is Apple Inc. and the product is the iPhone.

The value chain activities that the iPhone would go through from start to finish would be:

1. Design – The design team at Apple creates the most innovative and cutting edge phones.
2. Manufacturing – The manufacturing team at Apple produces the iPhone using advanced technology and skilled labor.
3. Distribution – The Distribution team ensures that the iPhone reaches customers in the most efficient and cost effective way possible.
4. Customer Service – If there are any issues with your iPhone, customer service is there to help.
5. Marketing – Apple uses a variety of marketing techniques to get people interested in their products.
6. Legal – Apple takes care of all the legalities involved.

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