A Guarantee That Is Explicitly Offered at the Time of Sale

question 21

Multiple Choice

A guarantee that is explicitly offered at the time of sale is called a(n)

• A) implicit warranty.
• B) express warranty.
• C) traditional warranty.
• D) extended warranty.

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Definitions:

Controllable Margin

The portion of profit or margin that can be directly influenced by management decisions and actions.

Operating Assets

Assets used in the daily operations of a business to generate revenue, including cash, inventory, and equipment.

Return on Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments.

Flexible Budgets

Financial plans that can be adjusted or modified to take into account changes in volume of operations or activity levels, allowing for more accurate budgeting.