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Re: goodboy2 post# 90337

Monday, 01/24/2011 10:23:32 PM

Monday, January 24, 2011 10:23:32 PM

Post# of 312015
This is pretty much the best I can do:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59133067

I can't "prove" something that I know to be true from my own experience and still remain anonymous while retaining confidentiality. It is simply impossible. All I suggest is that you ask a Cost Accountant that works in a manufacturing environment or a Consulting environment where labor costs and Overheads are tracked closely and come back to the board with your findings.

I have never included R&D costs in my comments. Those are sunk costs which I would not normally included in my analysis. They have to be recovered in time, but the timing is entirely arbitrary and defies analysis, as the product may be a "loss leader" which may not be designed for profitability anyway. R&D costs are an interesting area wrt whether they are capitalized or expensed and which is treated different under Canadian and US GAAP.

Just because something is given as an estimate, especially in an off-the-cuff back-of-the-envelope manner, it should not be taken as fact anyway. To question it is to add value to a discussion IMO. Estimates can take months to do btw... Hopefully you find my comments useful.

GLTA.

I don't get no respect!!!