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March/June 2021 Q3(a)(i)
Sir, the questions require us to explain whether the four-year software contract with Cent Co is a single PO?
In my thoughts, I think it can be conclude that it’s a separate PO due to software and the 4yrs updates reflect SASP AND software can function on its own without the updates.
However, I am not understand why there is a single PO in this arrangement. Can you explain it to me?
Thank you in advance.
They are looking for discussion of the principles, so don’t worry too much about the conclusion.
The question is – are the products sold separately – so could I buy the software from one supplier and the updates from another supplier? If not it is likely to be a single PO.
Sir, in the questions it states that ‘monthly updates improve effectiveness, not essential to its functionality’. It seems like separate PO, software can function without the updates.
I think the products can sold separately too, since software and updates are SASP.
Why it’s single PO?
Thank you.
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