Revenue on a multiple-element contract typically is allocated to independent parts of the contract based on their relative selling prices.

Name: Revenue on a multiple-element contract typically is allocated to independent parts of the contract based on their relative selling prices.
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Quizplus · Accepted Answer

This statement is true. According to accounting standards, revenue on a multiple-element contract is allocated based on the standalone selling prices of each element. This is known as the relative selling price method.

Revenue on a Multiple-Element Contract Typically Is Allocated to Independent