Replies to post #14494 on Advanced Micro Devices Inc (AMD)

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Constantine, Re: cpu costs also include all marketing costs

Absolutely not! CPU *costs* are what it takes for Intel to design and manufacture a CPU (fixed and variable, respectively). Once you start including marketing or administrative costs into operations, then the calculation is nothing but subjective.

For example, how do you quantify successful marketing? Is there a specific ROI? If Intel cut all marketing efforts to be cost competitive with AMD, what would be the end result? How about anywhere in between? You see, there is nothing but subjective speculation in the answers to those questions, which is why those costs are listed separately on the balance sheet and have a whole different meaning for a company.