The products that ICA Company offers come with a guarantee that covers the cost of repairs...

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The products that ICA Company offers come with a guarantee that covers the cost of repairs for any manufacturing flaw that the client discovers within the first six months of ownership. The following pattern of expected repairs is indicated by the company's previous performance and future predictions. % of items purchased 60 30 10 Defects None Minor Major Cost of repairs P 40,000 50,000 Required: What is the expected cost of repairs in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets? The products that ICA Company offers come with a guarantee that covers the cost of repairs for any manufacturing flaw that the client discovers within the first six months of ownership. The following pattern of expected repairs is indicated by the company's previous performance and future predictions. % of items purchased 60 30 10 Defects None Minor Major Cost of repairs P 40,000 50,000 Required: What is the expected cost of repairs in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets?

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60 of items purchased have no defects 30 have minor ... View the full answer