Q632
Method which determines weights of cost allocation by considering cost of each user as separate entity is known as
A.
bundled products allocation method
B.
variable cost allocation method
C.
stand-alone cost allocation method
AnswerD.
incremental cost allocation method
Answer: Option C
Solution
Answer: Option C
Solution:
Method which determines weights of cost allocation by considering cost of each user as separate entity is known as stand-alone cost allocation method. Cost allocation methods are designed to allocate costs not necessarily associated with a product, to the appropriate products to get a realistic estimate of costs so that a proper price can be determined for a particular product.