Telecom Co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. To induce customers, Telecom Co. provides a free phone. Telecom Co. normally sells the phone on a stand-alone basis for $200. Telecom Co. also charges the customer a one-time activation fee of $35. Which of the following is true? A. The free phone constitutes a marketing expense. B. The activation fee is a separate performance obligation. C. There are two distinct performance obligations: the wireless service and the phone. D. There are two distinct performance obligations: the voice service and the data service.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Telecom Co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. To induce ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Leona enters into a contract with munchie bakery to cater a sales conference. when the conference is postponed indefinitely, leona asks a court to cancel the contract and return the parties to the positions that they held before its formation.
Answers (1)
Late in the semester, a friend tells you, "I was going to drop my psychology course so I could concentrate on my other courses, but I had already put so much time into the course I decided not to drop it.
Answers (1)
Julie Lambert has a large catering company. On May 1, a new client paid a 25% deposit of S1000 in advance of an event. The remaining balance of $3,000 was paid on June 15, when the event was catered.
Answers (1)
Which of the following would be used to apply decorations, such as small fake gems, to the nails? clear polish acetone adhesive sealant
Answers (2)
Farmer and Taylor formed a partnership with capital contributions of $250,000 and $300,000, respectively. Their partnership agreement calls for Farmer to receive a $80,000 per year salary. The remaining income or loss is to be divided equally.
Answers (1)
New Questions in Business
Cannon cannery, inc. estimated its factory overhead at $510,000 for 2008, based on a normal capacity of 100,000 direct manufacturing labor hours.
Answers (1)
Calvin knew his small local hardware store could not compete on price with the big-box discounters so he began offering classes for new homeowners and found other ways to provide services the bigger stores don't. Calvin's competitive edge is:
Answers (1)
Which of the following is an important principle for effectively interacting with the audience during presentations? Multiple Choice Reframe questions to match the audience's agenda. Restrict the number of questions to a minimum.
Answers (1)
Altamonte Telecommunications has a target capital structure that consists of 45% debt and 55% equity. The company anticipates that its capital budget for the upcoming year will be $1,000,000.
Answers (1)
A loan period does not affect the total cost of a loan
Answers (2)