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product warranty cost definition

The cost of repairing or replacing previously sold products during their warranty periods.

Related Q&A

Is a manufacturer's product warranty part of its manufacturing overhead or is it part of its SG&A expense?
When should a product warranty liability be recorded?
What are accrued liabilities?
Where is a contingent liability recorded?
What is a product cost?
What are direct costs?

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Harold Averkamp

Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years,
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Free Guide to
Bookkeeping Concepts

Accounting Bookkeeping Concepts PDF Cover

Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.

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