Subject: Re: "I've got more programmers than you"
From: "Jonathan S. Shapiro" <>
Date: Sun, 7 Oct 2001 14:25:28 -0400

> The lease on a manufacturing facility is fixed, but it is accounted for
> as COGS...

Yes. Sorry. I should have said "one time". That is, a lease on equipment is
COGS, but the purchase of the same equipment is a depreciable capital

In my past companies, if the recurring cost was something we would carry
anyway, we booked it as operating expense so long as the portion motivated
by sales support was negligable. When sales hit a point where they needed
their own servers we started booking those servers and their operating
expense under COGS.