drkohler on 29 October 2008
quaiky said:
i also think in q2 they probably allready start ramping up productions to have enough consoles on stock for holiday season if thats the case then that will also lead to increased costs (since the consoles won't be sold instantly). |
You can't just add one side of the equation into a financial report. If you produce some stock of a gadget, you obviously add manufacturing costs to your report. However, you now have new inventory and possibly removed some old inventory (components in stock to build the gadgets) which you have to give a value =asset in your financial report. You can't put a zero in there. Exactly _what_ value you add there is one of the points I mentioned above which could tweak your bill to either side.
