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To: i-node who wrote (89447)	1/3/2000 9:08:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Damn, I'm long winded these days. Guess I ought to get to work... Yes and me too<G> I have to look at the footnotes abaing regarding operating expenses. I believe there were hardly any items in that category. I admit to it being a while since I last studied it. Glenn

To: i-node who wrote (89447)	1/3/2000 9:14:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Let's think about how this happens. Keep in mind that accounting requirements are that the income statement reflect separately Revenues, Cost of Sales, Gross Margin, Operating Expenses, etc. Operating Expenses are generally broken down between "General & Administrative" expense and "Selling" expense. The problem is that fulfillment costs really should not be included in cost of sales, as they are not "direct" costs. OTOH, they aren't G & A, either. In fact, they pertain to "Selling" better than any of the other commonly used categories. It's a small jump from "Selling" to "Marketing". This is the point. We would understand the financials better if the selling/operating costs were not all grouped together under marking. We should have two line items here whih would add up to the same total. That being operating and marketing. Glenn