Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-39

Cost accounting:
Cost accounting is a form of managerial accounting that aims to capture a company's total cost of production

venture captialist

an investor in companies or projects in which there is a substantial element of risk, typically new or expanding businesses.

Cost accounting is generally essential when a business is mature and best opportunities to increase profit are to minimise costs (without undermining profit)

The comments I that was referring to were generally by those who were focused on cost reduction with a view to increasing profit. i.e. "too much money is being spent on marketing".

Of course one should minimise unnecessary costs - and it is an absurd extension argument that I was saying venture capitalists are not interested in costs.

Sophisticated venture capitalists are generally aware of the risks, and are more focused on earnings potential rather than immediate profit. Hence their criteria are different to cost accountants.


Investors who judge Dro primarily by its immediate profit should seek other opportunities.