An option for a customer to purchase additional goods at a discount from list price is always a performance obligation, because it confers a material right.

Question

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An option for a customer to purchase additional goods at a discount from list price is not always considered a performance obligation. It is considered a performance obligation only if the option provides a material right to the customer that they would not receive without entering into that contract.

An Option for a Customer to Purchase Additional Goods at a Discount