How do you account for financial losses in order to maintain quality customer service, for example, a restaurant that gives a free meal to an upset customer or a company that gives repeat customers a discount? From the viewpoint of a management accountant, how would this cost be classified and how would it figure into a companys financial statements? This must be a 200 word response, but I'm not looking for you to write 200 words, I'm more interested in being put on the right path to expand upon the answer more than I can right now. Please include links to web sites or documents I can cite for where the information was gathered. I don't know how a company would account for special promotions or discounts or other financial losses due to quality. Hope this helps clarify