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
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Quick Summary
This discussion explores whether the cost of providing after-sales services, such as three years of software updates for mobile phones, should be considered a production cost. The consensus is that these are not production costs but rather business expenses. Companies incur these costs and debit them to the profit and loss account, often by creating a provision for warranty expenses based on historical data.
It's not a production cost ............ but companies provide service without taking any fees........ then it will be their expenses whatever they incurred ................