Question

TechServe sells a perpetual software license bundled with significant customization and 2 years of PCS (post-contract support). Customization is complex and significantly modifies the base software to integrate with the customer’s ERP. The license key is delivered at contract inception; customization spans 5 months; PCS covers updates and hotline. How many performance obligations (POs) most likely exist?

A One PO (integrated solution: license + customization + PCS)
B Two POs (license + [customization+PCS])
C Two POs (integrated [license+customization] + PCS)
D Three POs (license, customization, PCS)
E One PO if customization > 4 months; else three POs
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