Refer to financial statements of apple(apple.com) and google (google.com) to answer the following.

Required

1.Identify at least two activities at apple and at google that cause cost to be incurred. Do you believe these companies should be concerned about controlling cost of the activities you identified?

Explain

2.Would you classify apple and google as service, merchandising or manufacturing companies?

Explain

3.Is activity based costing useful for companies such as apple and google? Explain

Introduction: for introduction please state that objective of this assignment is to understand item sin the income statement

The provide in the next section income statement and explain what are these costs are used for making conclusions

2016 income statement (all number in millions)

Sales $215639

Cost of sales $131376

Gross margin $84263

Operating cost

Research and development $10045

Selling and admin $14194

Operating expenses $24239

Operating income $60024

Income from other activities $1348

Income before provisions for income taxes $61372

Provision for income taxes $15685

Net income $45687

Then you identify two costs items in the statement and explain what is used for .