Intel is mostly known for manufacturing silicon chips for computers. Answer the following questions using the company’s Form 10-K for the period ended December 27, 2014. The Form 10-K can be accessed through the “Investors Relations” link on the company’s website at www.intel.com or through the EDGAR system. Read the following sections of the 10-K: “Company Overview” and “Company Strategy” on pages 1 and 2, and “Inventories” on page 64.
Required
a. Is Intel a manufacturing or service business? Explain.
b. Based on your response to Requirement a, what types(s) of inventory, if any, do you expect Intel to have? Explain.
c. What types of inventory did Intel disclose in its Form 10-K, and what were the dollar amounts of these inventories for 2014 and 2013?
d. What are some of the cost drivers that Intel might use to allocate common costs to the various products it produces?
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