Question: When a contract contains more than one performance obligation, the seller allocates the transaction price to each performance obligation in proportion to the relative stand-alone

When a contract contains more than one performance obligation, the seller allocates the transaction price to each performance obligation

  1. in proportion to the relative stand-alone selling prices of those goods and services.
  2. according to the standard prices for the goods and any balance remaining is allocated to services.
  3. according to the amount of labor involved with each part of the contract.
  4. according to none of these choices.

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