Accounting for Product Warranty Costs Under an Assurance-Type Warranty ________

Multiple Choice

Accounting for product warranty costs under an assurance-type warranty ________.

A) is required for income tax purposes
B) charges an expense account when the seller performs in compliance with the warranty
C) is frequently justified on the basis of expediency when warranty costs are immaterial
D) should be used whenever the warranty is an integral and inseparable part of the sale