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A production service is never done. You've realized less than 20% of the total cost in year one, and the payroll spend in years two through five will steadily increase as the team expands. Amortization spreads the front-loaded expense of building a factory out to the same timeframe as the revenue it brings, but software development expenses are slightly back-loaded if anything.



Amortization also spreads the back loaded expenses out to the timeframe of the revenue




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