1Z0-1056-26 practice question 4 of 10

What do you need to total in order to find the total transaction price for a customer contract that is calculated by Revenue Management?

Full set: 186 questions

Answer options

A: the extended SSP amounts for all performance obligations in the customer contract

B: the SSP amounts for all performance obligations in the customer contract

C: the selling price for all performance obligations in the customer contract Correct answer

D: the allocated amount for all performance obligations in the customer contract

E: the billing amount for all performance obligations in the customer contract

Correct Answer:

C. the selling price for all performance obligations in the customer contract

Explanation

In Revenue Management the contract transaction price equals the sum of the observable selling prices of all performance obligations. Extended SSP amounts are used only to derive allocation percentages; they do not represent the consideration promised by the customer.

Why Incorrect

A. Extended SSP totals are a benchmark, not the contractual consideration.
B. SSP (unit) omits quantity; not the negotiated price.
D. Allocated amounts are derived after the transaction price is known.
E. Billing amounts may exclude un-billed promised consideration.

References

1. Oracle Fusion Cloud Financials, Revenue Management Implementation Guide 24D, “Determine the Transaction Price”, 1st para (Doc ID E96294-02, p. 157).

2. IFRS 15 & ASC 606 Concepts in Oracle Revenue Management White Paper, Section 3.2 “Contract Transaction Price” (March 2023, p. 7).

Keep practicing

Take the free 1Z0-1056-26 practice test

Ten exam-style questions with answers and explanations, plus the exam facts and study guides.

Start the free practice test