The stand-alone revenue allocation method is a weighted-average method.

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Quizplus · Accepted Answer

The stand-alone revenue allocation method is indeed a weighted-average method, as it calculates the standalone selling price by weighting the prices of all observable inputs (e.g. prices charged for similar products, expected cost plus a margin, etc.) based on their relative importance or significance. This weighted-average approach ensures that the standalone selling price reflects the individual characteristics of the product or service being sold, as well as the market conditions and other relevant factors that affect its value.

The Stand-Alone Revenue Allocation Method Is a Weighted-Average Method