Examlex
Typically exempt from the sales/use tax base is the purchase of computer and cell phone equipment by a large consulting firm that is incorporated in the state.
External Failure Cost
The costs incurred when a product or service fails to meet quality standards after being delivered to the customer, including warranties and repairs.
Warranty Period
The specified time period during which a product is guaranteed to be free from defects and the manufacturer or seller will repair or replace defective parts at no charge.
Repairs And Replacements
Activities and costs associated with fixing and replacing parts of equipment, buildings, or machinery to ensure operational efficiency.
Prevention Cost
Costs incurred to prevent defects in products or services, including quality planning and training expenses.
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