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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A foreign company wants to purchase 2100 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4000 in order to stamp the foreign company's name on the product.
Answers (1)
The top executives of Willow Inc., a furniture company, have decided what markets to compete in. Willow Inc. now has to adopt a set of organizational processes that enables it to effectively carry out these decisions.
Answers (2)
A marketing manager is attempting to decide whether a new product launch decision should be postponed until some additional marketing research can be conducted. Which question should this manager ask himself or herself?
Answers (1)
Run-of-the-Mills provides your marketing firm with the following dа ta: When the price of guppy gummies decreases by 4%, the quantity of flopsicles sold decreases by 4% and the quantity of mookies sold increases by 3%.
Answers (1)
For her first speech, Rebekah plans to explain her interest in dance beginning with her childhood and continuing through her days in high school. Which pattern of organization discussed in your textbook will she use in her speech?
Answers (1)
New Questions in Business
For Year 2, Etzkorn Corporation's sales were $1,480,000, its gross margin was $580,000, its net operating income was $63,714, its net income before taxes was $42,714, and its net income was $29,900.
Answers (1)
An insured purchased an insurance policy 5 years ago. last year, she received a dividend check from the insurance company that was not taxable. this year, she did not receive a check from the insurer.
Answers (1)
An investor shorts 100 shares when the share price is $50 and closes out the position six months later when the share price is $43. The shares pay a dividend of $3 per share during the six months. What is the investor's profit or loss? a.
Answers (1)
Which term refers to the beginning of the constitution?
Answers (1)
The risks of a focus strategy include: a. decisions by focused competitors to use their resources to serve a wider range of customers' needs. b.
Answers (1)