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The accounting for warranty cost is based on the expense recognition principle, which requires that the estimated cost of honoring warranty contracts should be recognized
The accounting for warranty cost is based on the expense recognition principle, which requires that the estimated cost of honoring warranty contracts should be recognized as an expense:
A. when the product is brought in for repairs.
B. in the period in which the product was sold.
C. at the end of the warranty period.
D. only if the repairs are expected to be made within one year.
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