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After sale services as a part of production cost
if a mobile manufacturing company also provide 3 year after sale service I.e software update so does it is included in cost of production as provision for after sale services
Replies (4)
It's not a production cost ............ but companies provide service without taking any fees........ then it will be their expenses whatever they incurred ................
Mean it is debited to p&l a/c
YES..... ... .....
Dr. Warranty expense
Cr. Warranty liability
This amount is derived based on past expectations.
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