Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (58608)	8/17/1998 1:34:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

LOD, for accounting purposes, a sale is defined as the point when the customer takes physical possession or control of the goods. As soon as a computer is loaded on a common carrier it is a sale. There is precious little wiggle room in this definition with direct sales. The reason that Compaq was able to screw around with the sales numbers was that it could "stuff the channel" (i.e., create bogus sales by "selling" to a reseller who had recourse to Compaq for good that did not sell through). That's a far cry from Dell's sales situation. Managing earnings by the ad hocshifts in sales recognition policy is a dangerous and unethical game because it directly affects managers compensation through the value of stock options. TTFN, CTC TTFN, CTC