Which of the following is NOT an acceptable allocation approach to transaction pricing?
A) expected value approach
B) adjusted market assessment approach
C) expected cost plus a margin approach
D) residual approach

Question

Quizplus · Accepted Answer

The expected value approach is not an acceptable allocation approach to transaction pricing. This method, which involves calculating the expected value of future cash flows or benefits, is not typically used for transaction pricing, which often relies on more concrete and immediate pricing strategies such as cost-plus, market assessment, or residual approaches.

Which of the Following Is NOT an Acceptable Allocation Approach