Design Service

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Dear sir

Design Service Expenses is it Direct expenses or indirect expenses?
Replies (4)
What is the nature of your business

It’s a research cost, not capitalised which means not directly attributable to the asset, so naturally it’s a indirect cost and written off.

If the same design services are carried forward into production, eg, someone designed a wallet and put into production, then and only then it’s capitalised, which means direct costs. Hope this simplifies your query.

just design only - indirect cost

design and production- direct costs

Good reply by Yasaswi


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