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Technology Stocks : Siebel Systems (SEBL) - strong buy?

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To: Wizard who wrote (2210)10/19/1998 5:55:00 PM
From: Reginald Middleton  Read Replies (1) of 6974
 
<Since when is marketing not an operating expense. Many expenses are discretionary but still operating expenses. >

In reality, there is no such thing as a discretionary operating expense that has a benefit that lasts past the year of initial cash outlay. The term expense as used on the income statement is an accounting moniker that fails to reflect reality, hence the capitalization and amortization nonsense.

Marketing is not an operating expense when it does not need to be performed to insure consistent operation of the company. At that point and beyond, it is a speculative investment. Think of it in terms of a shareholder, and not that of an accountant. There is a reason why accountants don't run money you know:-)
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