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Commerce · Q621

Costing

Graduate and Post Graduate · Commerce · question 621

Q621

Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as

A.
step down allocation method
B.
stand-alone revenue allocation method
C.
incremental revenue allocation method
Answer
D.
revenue mix allocation method

Answer: Option C

Solution

Answer: Option C
Solution:
Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as incremental revenue allocation method. The ranking of the individual products in the suite determines the revenues allocated to them.