Which of the Following Is Considered a Performance Obligation

question 146

Multiple Choice

Which of the following is considered a performance obligation?

• A) Up-front registration fees for a gym membership
• B) Extended warranties on electronic products
• C) Quality-assurance warranties on electronic products
• D) A processing fee to obtain a bank loan

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Definitions:

Long Run

The Long Run is a period in economics during which all factors of production and costs are variable, allowing for adjustment to changing market conditions.

Fixed Amount

A specific, unchanging quantity of something.

Diminishing Returns

An economic principle that states as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase proportionally.

Negative Returns

A situation in which additional investment or effort results in a decrease in output or performance, contrary to typical expectations for growth or improvement.