Sierra On-Line, a fast growing software development company, has been criticized by Forbes journalist for over capitalization of software development. Unlike most other software developers that typically use about 20% R & D expenditure, Sierra capitalizes 80%. Issues investors should consider when evaluating the Sierra include: Does the expense of the Sierra reflect economic reality? Whether their records are too aggressive or too conservative rivals? There is a business-Sierra, quite different from its competitors to invalidate the comparison? "Hide
by G. Peter Wilson, Elizabeth H. McNair Source: Harvard Business School 27 pages. Publication Date: March 24, 1993. Prod. #: 193142-PDF-ENG
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