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Question 209 - MB-310 discussion

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A company manufactures and installs air filtering units for industrial manufacturing plants.

The air filtering units are manufactured to order. The com

- 25 percent at the time of the sale

- 50 percent when the unit is shipped

- 25 percent when the unit is installed

Additionally, a three-year warranty is sold with covers.

You need to configure revenue recognition.

What should you do?

A.

Create a reallocation posting for the warranty revenue.

Answers
A.

Create a reallocation posting for the warranty revenue.

B.

Create a new revenue schedule for each unit.

Answers
B.

Create a new revenue schedule for each unit.

C.

Create the revenue schedule so that it uses the contract terms

Answers
C.

Create the revenue schedule so that it uses the contract terms

D.

Create one revenue schedule with milestones.

Answers
D.

Create one revenue schedule with milestones.

Suggested answer: C
asked 05/10/2024
Mathijn Smit
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