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Technology Stocks : Dell Technologies Inc.

DELL 125.96

-1.0%

3:59 PM EST

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To: Mohan Marette who wrote (72222)	10/15/1998 1:05:00 PM
From: Lee	Read Replies (2) of 176387

Hi Mohan,..Re: Dell just started the operation in China Hi Mo, I think we read that it only opened in September didn't we? At any rate, as far as a loss is concerned, maybe according to their accounting, each new plant, especially in a new country, is a stand-alone entity for that business unit. Therefore, the costs associated with startup would be charged against eventual proceeds? Since I'm not an accountant and don't know exactly how new ventures are reconciled with new business in the same area, I guess we have to hope somebody with this kind of accounting expertise speaks up. But intuitively, I would expect the expense of the new plant to be charged to that business unit with increasing future sales credited against that expense. So a startup anywhere would result in a loss until the business is established. Sheesh - didn't mean to make this so long but I don't see a problem. Lee

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