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:

Matrix Structure

An organizational structure that assigns specialists from different functional departments to work on one or more projects, leading to a blend of functional and project-based attributes.

Customer Service

The support and guidance offered by an organization to individuals who purchase or utilize its goods or services.

Pass the Buck

An expression referring to the act of shifting responsibility or blame from oneself to another person.

Process Structures

The design and organization of processes within a company, determining how activities are coordinated and executed.