PRODUCT WARRANTEES AND GUARANTEES
Warrantees and guarantees on products can represent a tremendous hidden cost for a business and a potential risk for an investor. Product warrantees and guarantees can lead to unplanned recurring expenses that are often not disclosed or evident in the financial forecasts. You will need to explore the types of product warrantees and guarantees that have been issued for which there are still outstanding liabilities. You will also need to determine if the warrantees and guarantees planned for the future are consistent with past expenses and whether or not they have been adequately planned for the future. Does the business’s budget include the cost for warranty repairs?
Sustainable businesses track the offsetting ...
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