When a sale involves goods and services, the selling price should NOT be
A) allocated to each of these parts.
B) allocated only to the part with the higher value.
C) allocated using the relative fair value method.
D) allocated using the residual method.

Question

Quizplus · Accepted Answer

When a sale involves both goods and services, the selling price should be allocated to each part to recognize revenue appropriately. Allocating only to the part with the higher value would not accurately reflect the transaction's economic realities.

When a Sale Involves Goods and Services, the Selling Price