begins amortizing software costs at the beginning of the following year. Estimate the effect of capitalizing software costs on Microsoft’s fiscal 1997‚ 1998‚ and 1999 income statements and balance sheets. [pic] b. Why do you think Microsoft chose to expense all software costs as incurred rather than capitalizing a portion of these costs? Remember that the FASB provides explicit guidelines for the treatment of software development costs that required capitalization once technological
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1. Introduction The Microsoft case describes how the company was build and gives an insight in their Human Resource policies‚ from the early 1980 until the 2001. Bill Gates believed that in order to develop outstanding software‚ attracting the right people was crucial. The focus of their HR policy was to attract intelligent technical people. These technical people were the foundation of Microsoft’s great success. However (senior) management functions were also given to these technical employees
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Oligopoly An oligopoly is an intermediate market structure between the extremes of perfect competition and monopoly. Oligopoly firms might compete (noncooperative oligopoly) or cooperate (cooperative oligopoly) in the marketplace. Whereas firms in an oligopoly are price makers‚ their control over the price is determined by the level of coordination among them. The distinguishing characteristic of an oligopoly is that there are a few mutually interdependent firms that produce either identical products
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Microsoft is an American multinational technology company‚ which is stationed in Redmond‚ Washington. The company develops and also licenses and manufactures computer software‚ electronics‚ and personal computers. Founded forty-one years ago and becoming one of the biggest electronic companies on the planet‚ Microsoft has become well established. The company has had bumps in their forty-one years of operations‚ though. The United States v. Microsoft antitrust case was initiated on May18‚1998 by the
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different businesses and then made the decisions for them. Monopolies are formed when a company controls all of the businesses in a specific industry. Monopolies caused several problems for industry in America. Companies could set prices however high they wanted‚ make wages low for the workers‚ and destroy the little businesses. Should the government break up Standard Oil’s monopoly? I think the government should break up the monopoly. In Ida Tarbell’s The History of the Standard Oil Company she
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Advantages of Monopoly: Monopolies do not always lead to increased prices‚ lower outputs and welfare losses. In fact‚ monopolies can often lead to increases in society’s welfare as large monopolists benefit from economies of scale in production and distribution. These falls in costs can often be passed on to consumers in the form of lower priced products. We will now discuss briefly some of the potential advantages of monopolistic market structures. • Lower production costs and increased welfare
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Astro Watching television has become a basic necessity among the people from all walks of life in today’s affluent society. In globalize era by today‚ the amount of satellite television provider has increase vigorously in the world. But Astro is still the one and only satellite television provider available in our country‚ Malaysia. (Wikipedia)The definition of Astro is an acronym for All-Asian Satellite Television and Radio Operator. Astro is Malaysia’s leading integrated cross-media group with
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(|30-25|/((30+25)/2))/(|20-21|/((20+21)/2))=3.72 To estimate the profit-maximization price‚ the marginal cost needs to be equal to the marginal revenue. When (p-MC)/p=1/|e| ‚ the profits are maximized. But as the marginal cost was not mentioned in the case‚ the profit-maximization price cannot be calculated. However‚ between
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dynamic of America. What once used to be a country that consisted of puritan societies is now the largest industrial center of the world. Between 1870 and 1900 the impact of big business affected the economy (Agriculture v. Mass production)‚ politics (Monopolies v. Labor unions)‚ and even the American people (employment opportunities v. Discrimination). Railroads controlled almost everything‚ including the economy. The railroad president “can fix the price of freights‚ and thus command the food” supplies
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Economic growth Paul. A (2001‚ pp.568) states that economic growth is a positive change in the level of production of goods and services by a country over a period of time.” This means that economic growth occurs when there is an increase in the levels of output for production and services. It is brought by technological innovation and positive external forces and can also be seen as a term to indicate the GDP growth. The economic growth is measured by percentage change in GDP (Gross domestic
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