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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (85999)	1/10/2000 12:36:00 PM
From: Greater Fool	Respond to of 1572982

>>It is true that not all depreciation is production related, but they are costs nonetheless Usually when people speak of the product cost it's the manufacturing cost. Roughly speaking, that's the cost of goods sold divided by the number of units sold. It's possible that some estimates of the product cost, such as MDR's numbers, are including overhead costs, such as R&D and SG&A, but that that would surprise me. The product engineering will usually roll up under the R&D line. For tax reasons it's in the company's best interests to show as much of the engineering spending as possible in the R&D line. Much of the manufacturing engineering will end up in COGS, though.