Which of the following most accurately describes the residual approach for transaction price allocation? Costs...
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Accounting
Which of the following most accurately describes the residual approach for transaction price allocation?
Costs of satisfying a performance obligation are forecasted and an appropriate markup for the goods or services involved is added.
Costs of individual items within a bundle are compared to the standalone prices of those items to determine the discount, which is reflected in the individual items.
The market in which goods or services are sold is evaluated in order to estimate the price customers are willing to pay for those goods or services.
The total transaction price is determined and any known standalone selling prices are subtracted in order to estimate unknown standalone prices.
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