Question
In: Operations Management
A warranty repair is an example of _______ cost.
A warranty repair is an example of _______ cost.
1. an appraisal 2. Once again, none of the answers on this list is true! 3. an external failure 4. a prevention 5. an internal failure
Solutions
Expert Solution
Once goods are sold to customers then any cost a company incurs to repair the goods is called warranty cost. The warranty cost comes with a definite time period and upon expiry of the defined time, the company does not have to bear the cost of the damage. The warranty period falls in the external failure cost of the company. Therefore, the correct option is (3). All other options are misfit and wrong.
keosha answered 2 years agoRelated Solutions
Give an example of an assurance-type warranty and an example of a service-type warranty. Be specific:...
Give an example of an assurance-type warranty and an example of
a service-type warranty. Be specific: think about the types of
warranties offered by businesses. I want real life examples.
In general, what are two key differences in these two types of
warranties? Explain, explain, explain!
Chloe Co. sold $300,000 of equipment during January under a one-year warranty. The cost to repair...
Chloe Co. sold $300,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On June 20, a customer required a $90 part replacement, plus $42 of labor under the warranty.
Provide the journal entry for (a) the estimated warranty expense on January 31 for January sales on page 10 of the journal and (b) the June 20 warranty work on page 14 of the journal....
Which of the following is an example of an extended warranty?
Which of the following is an example of an extended warranty?
Multiple Choice
Erickson Electronics promises to make repairs or replace any product found to be defective within a week of purchase.
Fancy Headphones, Inc. provides assurance that its headphones are defect-free after purchase.
Mark Electronics offers a warranty at an affordable price that provides additional protection after the customer takes possession of the product.
Azalea's Flowers assures clients that its flowers will stay fresh for at least a week....
A copier cost $200 for each repair call, after 3 calls they are free (For example...
A copier cost $200 for each repair call, after 3 calls
they are free (For example 1 call= $200, 3 or more calls = $600).
The following chart shows the probability of how many repair calls
you will have in 1 year. Questions 36-37
pls show work
# Repairs
0
1
2
3 or more
Probability
0.30
0.41
0.20
0.10
36. What is the expected repair call costs for 1
year?
$150.00
$200.00
$206.00
$220.00
$300.00
37. What is the...
No. 165 No. 172 Number of machines produced and sold 80 100 Warranty costs: Average repair...
No. 165 No. 172 Number of machines produced and sold 80 100
Warranty costs: Average repair cost per unit $1,200 $400 Percentage
of units needing repair 70% 10% Reliability engineering at $150 per
hour 1,600 hours 2,000 hours Rework at AT’s manufacturing plant:
Average rework cost per unit $1,900 $1,600 Percentage of units
needing rework 35% 25% Manufacturing inspection at $50 per hour 300
hours 500 hours Transportation costs to customer sites to fix
problems $29,500 $15,000 Quality training for...
This extra credit covers Chapter 8 specifically notes payable and warranty costs. Joel runs a repair...
This extra credit covers Chapter 8 specifically notes payable
and warranty costs.
Joel runs a repair shop. He warrants select products against
manufacturer defects. Joel estimates that warranty expenses will be
5% of sales. During the year 2013, Joel had sales of 3,507,000.
Warranty payments were 350,000 and accrued warranty expense from
2012 were 350,000. (6 points )
Using the data above answer the following:
What is warranty expense for 2013
What is the ending balance in the warranty liability...
Automobile repair costs continue to rise with the average cost now at $367 per repair.†
You may need to use the appropriate appendix table to answer
this question.
Automobile repair costs continue to rise with the average cost
now at $367 per repair.† Assume that the cost for an automobile
repair is normally distributed with a standard deviation of $88.
Answer the following questions about the cost of automobile
repairs.
(a) What is the probability that the cost will be more than
$490? (Round your answer to four decimal places.)
(b) What is the probability...
Automobile repair costs continue to rise with the average cost now at $367 per repair.†
Automobile repair costs continue to rise with the average cost now at $367 per repair.† Assume that the cost for an automobile repair is normally distributed with a standard deviation of $88. Answer the following questions about the cost of automobile repairs. (a) What is the probability that the cost will be more than $430? (Round your answer to four decimal places.) Incorrect: Your answer is incorrect. (b) What is the probability that the cost will be less than $280?...
Automobile repair costs continue to rise with the average cost now at $367 per repair.†
Automobile repair costs continue to rise with the average cost now at $367 per repair.† Assume that the cost for an automobile repair is normally distributed with a standard deviation of $88. Answer the following questions about the cost of automobile repairs.
(a)
What is the probability that the cost will be more than $490? (Round your answer to four decimal places.)
(b)
What is the probability that the cost will be less than $260? (Round your answer to...
Assurance warranty. Neuman management estimates that the probable cost of fulfilling the warranty will be $50,000. Between 1 May and 31 December 20X2,
Assurance warranty. Neuman management estimates that the probable cost of fulfilling the warranty will be $50,000. Between 1 May and 31 December 20X2, the actual warranty cost was $20,000. On 31 December 20X2, management decides that the probable additional warranty cost will be no more than $13,000. Between 1 January and 30 April 20X3, the additional cost was $11,000. Required:1. Prepare the entries concerning the sale and the warranty for 30 April 20X2 through 30 April 20X3.2. Assume instead that...
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