When Allocating the Transaction Price for a Contract with a Customer

When allocating the transaction price for a contract with a customer, the 'expected cost plus a margin approach' requires the entity to:

A) evaluate the market in which it purchases goods or services and estimate the price that a customer in that market would be willing to pay for those goods or services.
B) forecast its expected costs of satisfying a performance obligation and then add an appropriate margin for that good or service.
C) allocate the price for the goods or services on an 'in-combination' basis.
D) evaluate the market in which it sells goods or services and estimate the price that a customer in that market would be willing to pay for those goods or services.

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