The accounting for warranty costs is based on the

Name: The accounting for warranty costs is based on the
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

The expense recognition principle requires that expenses be recognized in the same period as the revenue they helped to generate. Warranty costs are recognized as an expense in the period in which the related revenue (i.e., the sale of the product with the warranty) is recognized. This is based on the matching principle, which is one of the foundations of accrual accounting.

The Accounting for Warranty Costs Is Based on the