Q613
Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as
A.
step down allocation method
B.
stand-alone revenue allocation method
AnswerC.
incremental revenue allocation method
D.
revenue mix allocation method
Answer: Option B
Solution
Answer: Option B
Solution:
Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as stand-alone revenue allocation method. Revenue Allocation Method uses product-specific information on the products in the bundle as weights for allocating the bundled revenues to the individual products.