http://emergentchaos.com/archives/2007/07/you-cant-spell-really-pointless-flamefest-without-r-o-i.html The Emergent Chaos Jazz Combo Wed, 01 Feb 2012 19:20:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://emergentchaos.com/archives/2007/07/you-cant-spell-really-pointless-flamefest-without-r-o-i.html/comment-page-1#comment-3794 Iang (counting with fingers) Fri, 20 Jul 2007 09:46:53 +0000 http://emergentchaos.com/?p=2435#comment-3794 This is just confusing models of comparison with definitions. The Savings that are talked about are not savings in economic terms (cash-at-bank-on-interest) but are sunk costs. Which means he doesn't have them at all, and his revenues are simply shrunk by that amount. The "savings" don't exist, but in accounting terms, are quite happily increased revenues if you ever see them come back. More on FC. This is just confusing models of comparison with definitions. The Savings that are talked about are not savings in economic terms (cash-at-bank-on-interest) but are sunk costs. Which means he doesn’t have them at all, and his revenues are simply shrunk by that amount. The “savings” don’t exist, but in accounting terms, are quite happily increased revenues if you ever see them come back.
More on FC.

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