________ ranks the individual products in a bundle and then uses this ranking to allocate the bundled revenues to these individual products.
A)The stand-alone revenue allocation method
B)The averaging approach
C)The incremental revenue allocation method
D)The joint production costing method
E)The weighted averaging approach

Question

Quizplus · Accepted Answer

The incremental revenue allocation method ranks the individual products in a bundle and allocates the bundled revenues based on this ranking. This method is based on the principle that the revenue generated by each product in the bundle is incremental to the revenue that would be generated by the other products in the absence of that product. This method is commonly used in situations where the products in the bundle are complementary, and the revenue generated by the bundle as a whole is greater than the sum of the revenues generated by the individual products on a standalone basis.

________ Ranks the Individual Products in a Bundle and Then