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Is that standard practice on physical products which have warranties? If not, then I do not see why it would be necessary here.
by jononor 6y ago
Is that standard practice on physical products which have warranties? If not, then I do not see why it would be necessary here.
- ghufran_syed 6y agoI believe you have to put aside some portion of the cost of the item as a liability. So say you sold a $100 item that cost $70 and the average cost of providing warranty service per item is calculated to be $10. Then you would have to set aside $10 of the $100 as a liability.
- josephcsible 6y agoWarranties are for things that break on their own. If the manufacturer of a physical product broke into your house and smashed it with a sledgehammer, they'd absolutely be on the hook for what they did, warranty or no warranty.