Question

Munch Inc. delivers various types of construction materials to a customer's building site. Over an 18-month period, Munch's employees utilize Munch's machinery and tools to construct a new office building for the customer. Munch identifies only one performance obligation related to this contract because ___________.

Answer 1

Munich combines use of labor, materials and use of machinery and tool to construct a single complete building.

Step-by-step explanation:

Munch Inc. delivers various types of construction materials to a customer's building site. Over an 18-month period, Munch's employees utilize Munch's machinery and tools to construct a new office building for the customer. Munch identifies only one performance obligation related to this contract because it combines use of labor, materials and use of machinery and tool to construct a single complete building.