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by danielmarkbruce
4 days ago
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If you drill a dry well, under successful efforts accounting, you expense it. You also make zero dollars. On top of that, oil wells decline, slowly but surely, just like... customers churn. If you spend $100 mill on sales and marketing and get zero customers, I'd agree it should expensed. If you get a bunch of customers, it's hard to argue against the capex treatment idea. |
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