ACC403, Principles of Accounting SLP 3 - Essay Example

Please put here Please put your here Please put the of the here 17th June 2008 Module 02 and nature of theOrganizationMicrosoft Corporation, headquartered at Redmond. Microsoft is a global leader in manufacture of computer system software and business application software. A company extremely well-known for its versatility, financial strength and strong business ethics was started very humbly with its first product – Disc Operating System (DOS). Today, Microsoft has grown over many times and offers various desktop operating systems, business applications software like MS-Office and MS-Project and very strong Rapid Application Development (RAD environments), databases etc.

One of the founders of Microsoft Corporation, Bill Gates is also the world’s richest man until very recently and well-known philanthroper. Activity and time Period Due to enhanced pressure from Mozilla’s Fire Fox browser, Microsoft Corp has decided to immediately start work on Internet Explorer 8.0. This is despite the fact that IE 7.0 has been launched just 5 months before and is still a hot favorite among various desktop users across the globe. But the competition is threatening to overtake the MS in the browser market and the competition’s browsers are not MS-friendly in various aspects.

There is no specific time period that has been taken into reference. It is a competitive scenario which has pushed Microsoft Corporation to take imminent decision. The costs were observed over the last 38 month period and some of the projected costs for next 12-15 months. Inputs, results and implicationsThe management team from MS considered several of following costs:Non-relevant Costs:Cost of developing MS IE 7.0 – USD 2,380,000.00Legal Costs USD 1,850,000.00Cost of Developing XP 2003 which packaged MS IE 5, 6 & 7 – USD 8,900,000.

00Cost of developing a SP 19.815 for XP 2003 – USD 385,000.00Relevant costs:Cost of market research for MS IE 8.0 – USD 3,100,000.00Cost of developing MS IE 8.0 – USD 3,300,000.00Bibliography1. ICFAI Center for Management Research ICMR. Financial Accounting & Financial Statement Analysis. Hyderabad: ICFAI Center for Management Research, 2004.2. The ICFAI University Press. Introduction to Management Accounting. Hyderabad: The ICFAI University Press, 2004.