CAF-6 · Chapter 5 · Question 7 of 15
A bundle of Product A and Service B is sold for Rs. 800. Standalone prices are: A = Rs. 600, B = Rs. 400. How much is allocated to Product A?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 480
Explanation
Allocation is based on relative standalone selling prices. Total standalone = 1,000. Allocation to A = (600/1,000) * 800 = Rs. 480.
More IFRS 15 Revenue from Contracts with Customers MCQs
- Q9Control of an asset is transferred to a customer when the customer has:
- Q10If an entity acts as an 'Agent', how much revenue should it recognize?
- Q11A contract modification is treated as a 'Separate Contract' if the scope increases by adding distinct goods and:
- Q12Assurance-type warranties (that the product complies with agreed specifications) are accounted for under:
- Q13When should an entity recognize a 'Contract Asset'?