One thing that can blur the line when looking at Opex % is whether it includes the amortization of software development costs. Some of the names in these examples include it in cost of revenue and others in opex (and some in both). It would be nice if FASB would finally put a clean stake in the sand as to where it should go.
What it should be is what is benefiting. The typical ones we talk about relatives to software developed for customers, which is cogs. But some software developed might be for the accounting team which would be G&A
It would be nice if FASB were that direct. Some of the only posts I've seen on whether it should be COGS or Opex are written by investors who likely have a bias against COGS.
One thing that can blur the line when looking at Opex % is whether it includes the amortization of software development costs. Some of the names in these examples include it in cost of revenue and others in opex (and some in both). It would be nice if FASB would finally put a clean stake in the sand as to where it should go.
What it should be is what is benefiting. The typical ones we talk about relatives to software developed for customers, which is cogs. But some software developed might be for the accounting team which would be G&A
It would be nice if FASB were that direct. Some of the only posts I've seen on whether it should be COGS or Opex are written by investors who likely have a bias against COGS.