peteblue
Welcome back Wayne
They don’t focus on advance billings for an advanced state of the company. It’s so they can correctly apportion the costs associated with the respective revenues so that they can correctly calculate profits (and tax etc). Business generally don’t change accounting practices half way through a year either. There is a difference been accruals and cash flow management and this though.
This was to safe face. And so that headline figures look like what was promised. The numbers included tests that were sent, ignoring the fact that a third of the tests sent in the preceding week were returned to the distributor and had not reached their intended target. The figures weren’t adjusted for this. I’m not even going into the fact that the test is highly invasive and would be hard for someone at home to administer correctly.
The latest daily figures show 56k actual tests. 56% of the target.
Sales Directors look at billings because that’s what they are driven by. They are not particularly interested in costs. The Finance and Operations people are, but that’s for another day.
I totally agree it was to save face, but as was even said by the medic the other day, we can count them going out or we can count them coming back. If you count them going out you at least see a trend of the continuing tests. If you measure them coming back you have absolutely no idea if or when they may do so, so just get peaks and troughs.....