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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: Dwight E. Karlsen who wrote (25990)11/15/1998 8:42:00 AM
From: Glenn D. Rudolph  Respond to of 164684
 
This is awfully strange accounting. I wonder how Land's End catagorized their order
fullfillment costs? "marketing and sales" seems mighty bizarre, since its not as if the cost
to gather the merchandize for shipment and get the order "shipment ready" is going to go
away for a "mail/internet order" company.


Dwight,

These costs will go up and down depending upon the number of sales. They will dissappear when they go bankrupt<G>

One needs to place these expenses is marketing if one wants to state they would be profitable if they stopped marketing. I believe that is the reason for allocating these expenses in this fashion.

I believe these expenses belong in the cost of operations. Actually, I know they do. There are four major line items in expenses. They are cost of goods sold, general and administrative, operations and marketing. There are others but those are the main ones.

Anyhow, you know my thoughts on Amazon.con.

Glenn