Chapter 20. Warranties

EIA Activity: Warranties

Click on the links on the right to answer the following questions.

  1. Question

    Use Link 1 to answer the following question. True or False: Two ways of measuring warranty expenses are by dollars spent and by the ratio between sales revenue and warranty expenses (looking at accrual rates).

    		A.
    		B.

  2. Question

    Which of the following are considered among the ten companies who experience high warranty cost associated with their brand name products and appliances?

    		A.
    		B.
    		C.
    		D.
    		E.

  3. Question

    True or False: In 2003, computer manufacturers set aside on average of 4% of product revenue in order to finance warranty costs.

    		A.
    		B.

  4. Question

    True or False: In the second quarter of 2011, the lowest ever average warranty accrual rate for all U.S.-based manufacturers was 5%.

    		A.
    		B.

  5. Question

    Have you ever bought anything under warranty? If so, what?
    Your response will be graded by your instructor.
    Have you ever bought anything under warranty? If so, what?

  6. Question

    In your opinion, does the benefit of buying an extended warranty on a product outweigh the cost? Discuss.
    Your response will be graded by your instructor.
    In your opinion, does the benefit of buying an extended warranty on a product outweigh the cost? Discuss.

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