Use the Following Information for Questions:
Melchor Inc -The Warranty Expense for 2011 Was:
A)$157,500
B)$175,500
C)$195,000
D)$305,000

question 62

Multiple Choice

Use the following information for questions:
Melchor Inc.offers a two-year warranty against failure of its products.The estimated liability is 1.5% in the year of sale and 3% in the second year.Sales and actual warranty expense for 2010 and 2011 were: $$\begin{array} { c c c } & \text { Sales } & \text { Actual Warranty Costs Incurred During Year } \\2010 & \$ 3,500,000 & \$ 110,000 \\2011 & \$ 3,900,000 & \$ 195,000\end{array}$$
-The warranty expense for 2011 was:

• A)$157,500
• B)$175,500
• C)$195,000
• D)$305,000

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Definitions:

Value Chain

A series of activities that a company performs to deliver a valuable product or service to its customers, from concept to delivery.

ISO Certification

A certification that indicates compliance with international standards developed by the International Organization for Standardization.

Consistently Performed

Actions or tasks carried out with uniformity and reliability over a period, ensuring stability and predictability in outcomes.

Internal Customers

Refers to individuals or departments within an organization that rely on the support or services of another unit to fulfill their job duties.