Which of the following best describes the stand-alone revenue-allocation method?
A) uses product-specific information on the products in the bundle as weights for allocating the bundled revenues to the individual products
B) ranks individual products in a bundle according to criteria determined by management
C) ranks individual products in a bundle according to costs allocated to the products
D) survey customers about the importance of each of the individual products in their purchase decision

Question

Quizplus · Accepted Answer

The stand-alone revenue-allocation method uses product-specific information as weights to allocate the revenues to individual products. This method considers the value of each product in the bundle and allocates the revenues accordingly, making it the most appropriate choice among the given options.

Which of the Following Best Describes the Stand-Alone Revenue-Allocation Method