Warranty costs - What is your definition of a "warranty cost"?

beaser3

Involved In Discussions
#1
Hi,

We have multiple products we are sending to outside sort houses for 100% visual inspection to ensure acceptability prior to shipping the product to our customer. Some of this is due to a previous customer concern and some is due to higher risk because we have not worked through all of the potential issues within the cell and we know there is a higher risk to ship nonconforming product. Many of the products have been in sort for over a year. Would you consider any of this cost to be warranty cost? We are currently capturing it all that way but I am wondering how others would view it.

What is your definition of a "warranty cost"?

Thanks in advance.
 
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Jim Wynne

Staff member
Admin
#2
Hi,

We have multiple products we are sending to outside sort houses for 100% visual inspection to ensure acceptability prior to shipping the product to our customer. Some of this is due to a previous customer concern and some is due to higher risk because we have not worked through all of the potential issues within the cell and we know there is a higher risk to ship nonconforming product. Many of the products have been in sort for over a year. Would you consider any of this cost to be warranty cost? We are currently capturing it all that way but I am wondering how others would view it.

What is your definition of a "warranty cost"?

Thanks in advance.
Warranty costs are normally described as those costs associated with servicing or replacing a product that's within its warranty period. What you've described wouldn't typically be classified as warranty costs, but you can call them whatever you want to call them.
 
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