Best Answer

7. The Pink Cadillac car dealership provides warranty work on all vehicles sold. The entityʼs past

experience has indicated the following:

-60% of cars sold in a year have zero defects

-25% of cars sold in a year have normal defects

-15% of cars sold in a year have significant defects.

It is estimated that a vehicle with normal defects will incur $3,000 in costs and a vehicle with

significant defects will incur $12,000 in costs.

During the current year, PC sold 80 vehicles and incurred $70,000 in actual costs. With an

opening balance of $40,000 in the warranty provision account, what would be the balance at

the end of the current year and how much warranty expense would be recognized during the

current year?

a) $174,000 and $204,000

b) $174,000 and $70,000

c) $204,000 and $204,000

d) $174,000 and $174,000

Q: How do you estimate Warranty Expense and how often do you do the estimates?

Write your answer...

Submit

Still have questions?

Continue Learning about Math & Arithmetic

estimate

Multiply two at a time.I often try to factor the numbers and group the factors as I have learned a few of the first powers of several of the low primes.I also use rough estimates to check that my answer is in the right "ballpark" often the estimates are "good enough" I also sometimes use my phone calculator...

There are different types of interval estimates. Given a rounded value for some measure, the interval estimate, based on rounding, is the interval from the minimum value that would be rounded up to the given value to the maximum value that would be rounded down to the given value. For example, given 4.5 with rounding to the tenths, the minimum of the interval is 4.45 and the maximum is 4.55 so that the interval estimate is (4.45, 4.55). Statistical interval estimates for a random variable (RV) are probabilistic. For example, given some probability measure (for example 95% or 5% significance level), the interval estimate for a random variable is any interval such that the probability of the true value being inside that interval is 95%. Often the interval is symmetrical about the mean value of the RV that is being estimated, but this need not be the case - particularly if the RV is near an extreme of the distribution.

1

Very often. Many physical constants cannot be determined exactly, only approximated. For calculations estimates are used for important mathematical constants, such as pi and e. I would hazard a guess that no continuous physical measure is known accurately - unless by definition. It may be known to a very high degree of accuracy but measurement errors, random errors and, if nothing else, quantum effects will probably prevent perfect knowledge. Second, total accuracy is often unnecessary. People on Answers.com often give answers to many decimal places - usually way beyond what can be justified. If you have the radius of a circle accurate to 3 siginificant figures and want to calculate the circumference, there is absolutely no point in using a value of pi that is accurate to a greater degree. Use the appropriate estimate and save yourself a lot of bother.

Related questions

In regard to a motor vehicle.All vehicles come equipped with a standard factory warranty. However, these often are limited by time and mileage. An vehicle protection plan is often times referred to as an extended auto warranty by a consumer, in which affords the consumer the ability to extend coverage past the the original factory warranty of the vehicle. Often times an extended auto warranty can also compliment a factory warranty by providing additional features and benefits like trip interruption and roadside assistance during the original warranty. An extended warranty always has a fee and is never free like a standard factory warranty; however can provide the assurance similar to the car warranty the vehicle had when new.

There are no good estimates of how often a child will need a transplant of his own cells. Estimates range from 1 in 1,000 to 1 in 200,000

Rechargable batteries should last for over a year. Often they only come with a non-defective warranty.

A point of reference from which measurements or estimates may be made is often called a benchmark

The standard warranty on a new Logitech gaming headset is 2 years. This is more then the regular 1 year warranty often given for similar computer peripherals.

Most manufacturers offer a warranty between 30 days and one year. The retailer will often offer an extra warranty, though this usually costs extra.

an arsenal

Political Correctness at the expense of actualcorrectness.

form_title=Buy a Car Warranty form_header=Unexpected repairs lead to unexpected and often high bills. Help plan ahead by buying a car warranty. Describe what you want covered under the warranty:=_ What is the price range you expect to spend per month?="" How long do you want the warranty to last?=_

A generic warranty is often a warranty placed on a product or service that is standard within the industry in which it is offered or produced. You will find many companies have generic warranties on their products when they manufacture many different types of products.

Operating Expenses are expenses that are incurred while running a business. Maintenance Expense could be considered anything from the cost of maintaining a company vehicle to repairs made on a building or some other type of "maintenance" that is require by the business in order to function at 100%. Many expenses have their own account such as, Utilities Expense, Rent Expense, Insurance Expense, Interest Expense, Supply Expense, just to name a few. Other expense may not have a specific account in which to be recorded, such as Travel Expense, Food Expense (perhaps to entertain a possible client), these expense are often listed under "Other Expenses".

Have heard of this often. The money is never sent to buy the warranty in hopes that you will not try to use it during the warranty period. Money is then keep as profit for the loan company.