The general rule is that the transaction price should be allocated to the performance obligations based on the relative standalone selling prices unless a discount is ________.
A) not related to all of the contract's performance obligations
B) related to all of the contract's performance obligations
C) less than the standalone selling price
D) not part of the variable consideration

Question

Quizplus · Accepted Answer

If a discount is not related to all of the contract's performance obligations, it should be allocated to the specific performance obligations to which it relates, rather than being spread across all obligations based on relative standalone selling prices.

The General Rule Is That the Transaction Price Should Be