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Apple Inc. is a California-based worldwide technology company. Based in California, it is one of the most well-known and prominent manufacturers of consumer electronics (Wikipedia). It is the world's most valuable corporation since January 2021, with a total revenue of $275.5 billion in 2020. Apple will be the fourth-largest PC vendor and fourth-largest smartphone manufacturer in 2021. (Wikipedia). Apple owns 14.5 percent of the global smart phone market, Samsung 21.8 percent, and Huawei 17.6 percent, according to IDC. Apple, on the other hand, dominates the smartphone market. In 2019, the corporation received 66% of the industry's earnings and 32% of its revenue (Investopedia). If a corporation has the highest profits but third most sales, it appears to be generating a huge markup (Investopedia).

The cost breakdown using the iPhone 11 pro max. When it comes to direct material expenses, they include things like raw materials that are required to manufacture components for each of the items in question, in this case, the iPhone 11 pro Max. $73.50 for the triple camera; $159 for the process, modems, and memory; and $181 for the screen, holding material, assembly, and other components (Investopedia).

Direct labour costs are the wages paid to workers directly involved in the iPhone's production and assembly. The most major cost is assembly, which is mostly done in China. In China, the average cost per hour is $3.15. Factory overhead cost includes all costs not defined as direct material or direct labor. Unlike other costs, this one isn't directly tied to production. It is typical practice to allocate overhead expenses based on common operations such as machine hours and distribution

(Lumenlearning.com). Overhead expenses include utilities, property taxes, factory depreciation, insurance, and other costs.

The expenses are then divided into three categories: fixed, variable, and mixed. Fixed expenditures do not alter with production levels. Their behavior does not alter quickly, regardless of product volume. Fixed costs include warehousing fees, factory rent, and full-time manufacturing personnel pay. So whether the company produces one item or ten thousand units, the above-mentioned fixed cost will remain constant. Variable costs are costs that change with the number of units produced. They are directly tied to the quantity produced and include direct material costs such as raw materials and direct labor costs. The variable cost for the iPhone 11 Pro includes labor, batteries, screens, cameras, and other components. Mixed costs involve both fixed and variable costs. Factory workers may receive extra pay for working overtime on the iPhone 11 pro. The pay component is a fixed cost, while the bonus is a variable cost. Consider your electric bill. Electricity contracts can be arranged with a base price that increases as usage exceeds a threshold. References: Wikimedia Foundation. (2021, November 21). Apple Inc. Wikipedia. Retrieved November 22, 2021, from https://en.wikipedia.org/wiki/Apple_Inc.

Brown, R. (2021, May 19). The cost of making an iphone. Investopedia. Retrieved November 22, 2021, from https://www.investopedia.com/financial-edge/0912/the-cost-of-making-aniphone.aspx. Walther, L. M. & Skousen, C.J. (2009). Managerial and Cost Accounting. https://library.ku.ac.ke/wpcontent/downloads/2011/08/Bookboon/Accounting/managerial-and-cost-accounting.pdf Heisinger, K., & Hoyle, J. B. (n.d.). Accounting for Managers. https://2012books.lardbucket.org/books/accounting-for-managers/index.html...