The awarding of frequent flier miles by airline companies is accounted for in a manner similar to:

Question

Quizplus · Accepted Answer

Frequent flier miles are accounted for similarly to warranty expenses because both represent future costs that the company is obligated to incur due to past transactions. Airlines estimate the cost of redeeming these miles in the future and record this as a liability, similar to how companies estimate and account for future warranty claims.

The Awarding of Frequent Flier Miles by Airline Companies Is