Define Severable and Non-severable services and differentiate between the two.

Define Severable and Non-severable services and differentiate between the two.

• A. "Non-severable" means there is a deliverable at the end of the period; "Severable" services can be severed and completed within the period.
• B. "Non-severable" means the work is ongoing; "Severable" implies a single deliverable.
• C. "Severable" means there is a deliverable at the end; "Non-severable" can be severed.
• D. They are the same.

Answer: (A)

The idea is whether a contract’s work can be split into parts that stand on their own and can be accepted and paid for during the period. Severable services are those that can be broken into distinct portions, each yielding a deliverable that can be completed, accepted, and paid for separately within the contract period. Non-severable services must be completed as a single, whole effort that results in one final deliverable at the end of the period; partial completion isn’t accepted as full performance. So the correct statement captures that non-severable work ends with a deliverable at the period’s end, while severable work can be divided and completed within the period. The other descriptions either misstate the nature of severability (e.g., implying severable means only one deliverable) or claim they’re the same, which doesn’t reflect how these terms are used in contracts.

The idea is whether a contract’s work can be split into parts that stand on their own and can be accepted and paid for during the period. Severable services are those that can be broken into distinct portions, each yielding a deliverable that can be completed, accepted, and paid for separately within the contract period. Non-severable services must be completed as a single, whole effort that results in one final deliverable at the end of the period; partial completion isn’t accepted as full performance. So the correct statement captures that non-severable work ends with a deliverable at the period’s end, while severable work can be divided and completed within the period. The other descriptions either misstate the nature of severability (e.g., implying severable means only one deliverable) or claim they’re the same, which doesn’t reflect how these terms are used in contracts.