 capital includes items such as payroll, prepaid PRACTICAL IP AND TELECOM FOR BROADCAST ENGINEERING AND OPERATIONS expenses, and inventory. Investment in fixed assets is typically con- sidered once a year during the budget planning cycle. Some organiza- tions use a process whereby the capital budgeting process is considered on a project-by-project basis instead of within the context of a strategic plan. Even if the project is a multi-year project, once approved by management and/or board of directors, it goes forward within the context of the organization's project or program management policy. Capital investment and changes in working capital show up in the statement of changes in financial position, or sources and uses of funds. It's likely that communications capital investment may be planned and made as part of the IT/MIS or broadcast technical oper- ations systems. IT/MIS and communications equipment, networks, and systems require similar focus and effort based on industry peer organizations, technology, and evolving standards. All three func- tions are cost centers and don't generate revenue and gross margin. But managing operating expense and capital investment have a direct impact on the organization's break-even point, or net income. In a business where the output is technology-based products and/or services, product planners and managers work hand-in-hand with design engineers and engineering managers to conceive, design, and deliver products to their customer base. The financial focus is on investing money in design and development of a product that will sell at a particular price that can be made for a cost that results in a margin of profit when sold. Considering the fact that products re- quire time to conceive, design, test, and begin manufacturing, rev- enue and gross margin are not realized until after time and resources have been invested. So the focus is on the amount of gross margin any given product will produce over its lifetime. Service businesses have the same constraints and issues, excep