When a company sells a bundle of goods at a discount, the discount should be allocated to the product that caused the discount and not to the entire bundle.

Question

Quizplus · Accepted Answer

The discount should be allocated to the product that caused the discount because this is the product that is being sold at a reduced price. Allocating the discount to the entire bundle would result in the other products in the bundle being sold at a higher price than they would be if they were sold separately.

When a Company Sells a Bundle of Goods at a Discount