Serve (Company) Costs

In the analysis of a company’s approach to managing functional costs, this term refers to after-sale support of the customer or the product. In a manufactured product, Serve costs include all costs of warranties, part supplies, trained repair employees, service centers, customer hotlines, and so forth. In a wholesale or retail company, Serve costs include after-sale services such as handling returns and crediting the Final Customer for the returned product. These costs may also include the costs of installing the product for the Final Customer and training the customer in the product’s use. (See also Functional Costs)