The accounting for warranty costs is based on the

Name: The accounting for warranty costs is based on the
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The matching principle states that expenses should be recognized in the same period as the revenue they generate. Warranty costs are considered an expense associated with the sale of a product, and therefore should be recognized in the same period as the sale of the product. This is why the accounting for warranty costs is based on the matching principle.

The Accounting for Warranty Costs Is Based on the