CAF-6 · Chapter 5 · Question 3 of 15
A company sells a machine and provides a 1-year service plan that is also sold separately. How many performance obligations are in this contract?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Two
Explanation
The machine and the service plan are distinct goods/services because the customer can benefit from each on its own and they are separately identifiable in the contract.
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