Question

The management of Hinrichs Corporation is concerned because survey data suggest that many potential customers do not buy vehicles due to quality concerns. It is considering taking the bold step of increasing the length of its warranty from the industry standard of 3 years up to an unprecedented 10 years in an effort to increase confidence in its quality.
Discuss the business as well as accounting implications of this move.



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  • CreatedApril 07, 2014
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