Final answer:
The option for a customer to purchase goods under more advantageous terms is not a performance obligation, whereas a money-back guarantee, a right of return, or an extended warranty are, as they are promises made as part of the sale.
Step-by-step explanation:
In the context of revenue recognition and the goods market, a performance obligation is a contractually agreed-upon task or promise that a company must deliver to a customer as part of a sale. Performance obligations can include delivering a good, providing a service, or fulfilling any other promise made to the customer as part of the sales agreement. Among the options provided, the correct answer as to which is not a performance obligation is: An option for a customer to purchase goods under terms that are more advantageous than those offered to other customers. This is not a performance obligation because it is essentially an incentive offered to the customer, rather than a promised good or service that is part of the sales contract.
Options such as a money-back guarantee, warranty, or service contract do indeed function as performance obligations. These are explicit promises to deliver additional services post-sale, such as the guarantee of a refund, repair, or maintenance, and are directly linked to the initial product or service purchased. Therefore, they are considered part of the seller's obligations after the point of sale.
As for the right of return, this also represents a performance obligation because it is a type of warranty that obligates the seller to take back the goods under certain conditions. In the case of the extended warranty, this too is a promise to provide a service beyond the standard warranty period, entailing a contractual obligation to perform maintenance or provide support.