IDENTIFYING PERFORMANCE OBLIGATIONS AA COMPUTERS LICENSES CUSTOMER RELATIONSHIP SOFTWARE TO ABS COMPANY. IN ADDITION TO PROVIDING THE SOFTWARE ITSELF. AA COMPUTERS PREMISES TO PROVIDE CONSULTING SERVICES BY EXTENSIVELY CUSTOMIZING THE SOFTWARE TO AB’S INFORMATION TECHNOLOGY ENVIRONMENT, FOR A TOTAL CONSIDERATION OF 3,456,000. IN THIS CASE, AA COMPUTERS IS PROVIDING A SIGNIFICANT SERVICE BY INTEGRATING THE GOODS AND SERVICES (THE LICENSE AND THE CONSULTING SERVICE) INTO ONE COMBINED ITEM FOR WHICH ABS HAS CONTRACTED. IN ADDITION, THE SOFTWARE IS SIGNIFICANTLY CUSTOMIZED BY AA COMPUTERS IN ACCORDANCE WITH SPECIFICATIONS NEGOTIATED BY ABS. REQUIRED: IS THIS A ONE PERFORMANCE OBLIGATION OR A SEPARATE PERFORMANCE OBLIGATIONS.

IDENTIFYING PERFORMANCE OBLIGATIONS AA COMPUTERS LICENSES CUSTOMER RELATIONSHIP SOFTWARE TO ABS COMPANY. IN ADDITION TO PROVIDING THE SOFTWARE ITSELF. AA COMPUTERS PREMISES TO PROVIDE CONSULTING SERVICES BY EXTENSIVELY CUSTOMIZING THE SOFTWARE TO AB’S INFORMATION TECHNOLOGY ENVIRONMENT, FOR A TOTAL CONSIDERATION OF 3,456,000. IN THIS CASE, AA COMPUTERS IS PROVIDING A SIGNIFICANT SERVICE BY INTEGRATING THE GOODS AND SERVICES (THE LICENSE AND THE CONSULTING SERVICE) INTO ONE COMBINED ITEM FOR WHICH ABS HAS CONTRACTED. IN ADDITION, THE SOFTWARE IS SIGNIFICANTLY CUSTOMIZED BY AA COMPUTERS IN ACCORDANCE WITH SPECIFICATIONS NEGOTIATED BY ABS. REQUIRED: IS THIS A ONE PERFORMANCE OBLIGATION OR A SEPARATE PERFORMANCE OBLIGATIONS.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.4SA

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