Similar to cost allocation,revenue allocation occurs when costs are related to a particular revenue object but cannot be traced to it in an economically feasible (cost-effective)way.

Question

Quizplus · Accepted Answer

Revenue allocation refers to the process of distributing the total amount of income or revenue generated among different departments, products, services, or units within an organization, rather than relating to the tracing of costs to a revenue object. Cost allocation involves assigning indirect costs to different cost objects, not revenue allocation.

Similar to Cost Allocation,revenue Allocation Occurs When Costs Are Related