QUESTION 80 Recognizing revenue — no right to payment for standard components Machine Co enters into a contract to build a large, customized piece of equipment for Manufacturer. Because of the unique customer specifications, Machine Co cannot redeploy the equipment to other customers or otherwise modify the design and functionality of the equipment without incurring a substantial amount of rework. Machine Co purchases or manufactures various standard components used to construct the equipment. Machine Co is entitled to payment for costs incurred plus a reasonable margin if Manufacturer terminates the contract early. Machine Co is not entitled to payment for standard components until they have been integrated into the customized equipment that will delivered to the customer. This is because Machine Co can use those components in other projects before they are integrated into the customized equipment. Does Machine Co have an enforceable right to payment for performance completed to date?