NRL Corporation's accounting information system reported warranty repair and product replacement costs totalling $12,000 in a recent accounting period. These costs are an example of which of the following quality costs?
A) Period costs
B) Post-sales activity costs
C) Activity-based costs
D) Prevention activity costs

Question

Quizplus · Accepted Answer

Warranty repair and product replacement costs are incurred after the sale of the product, making them post-sales activity costs.

NRL Corporation's Accounting Information System Reported Warranty Repair and Product