Question: If a contract modification adds distinct goods or services and the contract price increases by an amount that reflects the stand-alone selling price of the

If a contract modification adds distinct goods or services and the contract price increases by an amount that reflects the stand-alone selling price of the added goods or services, then the contract modification should be accounted for

by cumulative catch-up method.
by prospective method.
as a new separate contract.
none of these choices.

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2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.