Performance obligations relate to:
A)distinct goods or services
B)input costs of products or services
C)customer payment terms
D)the transaction price

Question

Quizplus · Accepted Answer

Performance obligations refer to distinct goods or services promised in a contract with a customer. These obligations must be capable of being distinct, meaning they can be provided separately or as a bundle, and they must be capable of being measured reliably. Input costs, customer payment terms, and the transaction price are all related to the pricing and financial aspects of a contract, but they do not necessarily define distinct goods or services that are promised to the customer.

Performance Obligations Relate To