I don't think they are in a stage in their business life cycle where they would be saying "we'll just put a bit away so that we can get the benefit of it in two or three years time". The expense is the expense but it's really not the point I was trying to make. If you take away the provision for warranty the business is still not making a gross margin on goods sold. If you are making a gross margin but still making a loss then you can look at trying to cut costs to turn it around but if you are making a no gross margin then you really have to act quickly because each item you sell is getting you into more trouble.
CFU Price at posting:
5.1¢ Sentiment: None Disclosure: Held