Jack has just received a complaint from one of his long-time customers about a problem with the ignition system on some automatic tillers that were delivered last month. Should Jack assume the product is fine and the user is at fault?
What will be an ideal response?
Jack should not assume product or service failure is the user's fault. He needs to keep an open mind to search for the facts in this case. It is easy to be influenced by a customer who is honestly making a claim for an adjustment. But the salesperson has a responsibility to his or her company too. A satisfactory adjustment cannot be made until all the facts are known.
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In a lawsuit for malicious prosecution, the original defendant sues the original plaintiff.
Answer the following statement true (T) or false (F)
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a. Work in Process Inventory accounts are adjusted at the time sales occur and inventory accounts reflect beginning balances. b. Cost of goods sold is adjusted at the end of the year and inventory accounts reflect ending balances. c. Cost of goods sold is accumulated in a Cost of Goods Sold account as sales occur and inventory accounts reflect beginning balances which need to be adjusted. d. Finished Goods Inventory must be adjusted and the Materials Inventory account reflects an ending balance. e. Cost of goods sold is accumulated in a Cost of Goods Sold account as sales occur and inventory accounts reflect ending balances.
Veritable Company stores office furniture with Warehouse Storage, Inc. (WSI), under a contract that limits the warehouse company's liability for lost or damaged property to $500. The furniture is lost through no fault of WSI. The loss is most likely suffered by
A. Veritable and WSI. B. Veritable only. C. WSI only. D. neither Veritable nor WSI.