Which of the Following Would Be an Example of Multiple

question 64

Multiple Choice

Which of the following would be an example of multiple performance obligations?

• A) Customer accepts delivery for a new outdoor spa tub.
• B) Contractor is hired to fix an overhead door and replaces several parts including springs and tracks.
• C) Customer purchases a new gas range and two-year extended warranty.
• D) Customer purchases a family pack of tickets to the Wolves football team that includes multiple tickets for the same game.

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Definitions:

MC

A term often short for Marginal Cost, which is the cost added by producing one additional unit of a product or service.

MR

Short for Marginal Revenue, which is the additional income earned by selling one more unit of a product or service.

ATC

Average Total Cost, which is the total cost of production (fixed plus variable costs) divided by the quantity of output produced.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.