For a company like General Motors, the reported warranty expense in any given year will usually include both the impact of the current year's sales and some revision of previous years' estimated warranty liabilities.

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This is because warranty expenses are typically calculated based on estimates of the costs the company will incur to repair or replace its products under warranty. These estimates may be revised as new information becomes available, such as actual repair costs or changes in product design. As such, the reported warranty expense in any given year will usually include a combination of the costs associated with current-year sales as well as adjustments to previous years' estimates of warranty liabilities.

For a Company Like General Motors, the Reported Warranty Expense