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It's still not being sold at a profit. Software engineering, marketing, etc. are not figured into the price.
by bluthru 13y ago
It's still not being sold at a profit. Software engineering, marketing, etc. are not figured into the price.
- deleted 13y ago[deleted]
- gamblor956 13y agoHe's referring to "COGS", meaning "cost of goods sold" which only includes costs directly related to the actual production and sale of the products sold. Indirect costs, such as R&D and marketing, are not usually included in COGS under US standard accounting practices (but are in some non-US accounting practices). Under standard accounting practices (GAAP), COGS is the only common above-the-line expense item used to determine gross revenue (aka gross income). Essentially all other expenses are deducted from gross income to determine net income (i.e., profit or loss).
- possibilistic 13y agoSo sunk costs don't matter? How does that work out in the long run?