Dear sir
Design Service Expenses is it Direct expenses or indirect expenses?
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Design Service
Replies (4)
Quick Summary
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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