A Service Warranty Is Considered to Be a Separate Performance

question 58

True/False

A service warranty is considered to be a separate performance obligation under the contract-based approach for revenue recognition.

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Definitions:

Competitive Advantage

A unique attribute or position that allows a company to outperform its competitors.

Customer's Tastes

Customer's tastes refer to the preferences, inclinations, and discretionary choices of consumers that influence their purchasing behavior and affect how businesses market and sell products or services.

Competitive Advantage

Competitive advantage is a condition or circumstance that puts a company in a favorable or superior business position compared to its competitors, often through unique resources, capabilities, or strategies.

Extra Services

Additional services provided beyond the basic offerings, often for an extra fee.