The transaction price for multiple performance obligations should be allocated
A)based on selling price from the company's competitors.
B)based on what the company could sell the goods for on a standalone basis.
C)based on forecasted cost of satisfying performance obligation.
D)based on total transaction price less residual value.

Question

Quizplus · Accepted Answer

The transaction price should be allocated based on the standalone selling price of each performance obligation, which reflects the price at which the company would sell the goods or services separately.

The Transaction Price for Multiple Performance Obligations Should Be Allocated