The transaction price for multiple performance obligations should be allocated b
ID: 2535196 • Letter: T
Question
The transaction price for multiple performance obligations should be allocated based on
selling price from the company’s competitors.
total transaction price less residual value.
forecasted cost of satisfying performance obligation.
what the company could sell the goods for on a stand-alone basis.
a.selling price from the company’s competitors.
b.total transaction price less residual value.
c.forecasted cost of satisfying performance obligation.
d.what the company could sell the goods for on a stand-alone basis.
Explanation / Answer
Answer:
d. what the company could sell the goods for on a stand-alone basis.
Reason:
The standalone selling price is the price at which an entity would sell a good or service separately to a customer. The best evidence of standalone selling price is the observable price of a good or service when the entity sells that good or service separately in similar circumstances, and to similar customers.
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