Exam MB-310 topic 2 question 16 discussion

Revenue type – Select the revenue type that defines the released product: Essential – The item is a primary source of an organization's revenue. This value is the default setting. Nonessential – The item isn't a primary source of an organization's revenue. When the median price settings are used, the price is 'carved out' to the median price and then allocated. For example, an essential item has a fixed price that must be recognized for revenue. If there is a discount, the discount might be carved out of the essential item revenue, but only up to the fixed price amount. The rest of the discount is taken out of the revenue for nonessential items. Alternatively, the discount might not be carved out of the essential item revenue. Post contract support – The item supports other elements that are included in the sale to the customer. The revenue price is distributed across the essential and nonessential products that are included in the sale. Depending on setup, PCS items might not require that contract start and end dates be defined on the sales order line.

correct