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  QUESTION 72 Allocating variable consideration to a series – pricing varies based on usage Transaction Processor (TP) enters into a two-year contract with a customer whereby TP will process all transactions on behalf of the customer. The customer is obligated to use TP’s system to process all of its transactions; however, the ultimate quantity of transactions is unknown. TP charges the customer a monthly fee calculated as $ 0.03 per transaction processed during the month. TP concludes that the nature of its promise is a series of distinct monthly processing services and accounts for the two-year contract as a single performance obligation. How should TP allocate the variable consideration in this arrangement?

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