Mr Fun,
why would considerable r&d expenses for customer specific development be reclassified as COGS?
if it is R&D, why not call it that? were they calling "COGS" R&D before when they should have not under GAAP? what do other high R&D companies call "COGS" - R&D or "COGS?
what is the reason for this change? clarification? if so, why now and not before? does a company have the choice of calling customer specific development either R&D or COGS?
if they want to be clear, why not have a heading: Research and Development: A. Basic R&D and B. Customer Specific Development R&D. plus any other sub-headings of types of R&D, if that is useful.
How come they can't figure out a way to clearly and simply let us know what they spent for R&D on a comparable basis - comparable YOY and comparable to peers? were they kidding us before, when they lumped R&D with customer specific development; or are they kidding us now by reclassifying part of R&D as COGS, so that only you and a lucent accountant could tell us where it is.
How come they can't figure out how to compensate their people so they don't soldier on the job for certain quarters to beat their "quotas". (fellas you've been making x% commission heretofore, from now on you get x+y% on whatever you sell. no quotas. more sales, more money - every quarter. pretty easy to understand; absolutely stimulating.)
why can't they figure out these simple, basic things?
i suppose the C in COGS means customers, what does the rest of the acronym mean?
do nt and csco classify customer specific development as R&D or as COGS? do they change the classification from time to time?
I put these questions to you because we are on the same thread, in the same discussion. i don't suppose you can know what is in the minds of the lu bureaucrats. my impatience is directed surely not at you, who have shared with us a great deal of useful information. it is directed at the obfuscators who now control lu, and who, in my opinion, are strangling a national treasure: Bell Labs.
I wish you well, and thank you for your patient and elegant
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