________ occurs when revenues are related to a particular revenue object but cannot be traced to it in an economically feasible (cost-effective)way.
A) Revenue estimation
B) Revenue allocation
C) Resource allocation
D) Revenue optimization

Question

Quizplus · Accepted Answer

Revenue allocation occurs when revenues are related to a particular revenue object but cannot be traced to it in an economically feasible way. This situation often arises when a company has indirect costs, such as overhead or general administrative costs, that cannot be easily attributed to a specific product or service. In these cases, the company must use a method of assigning those costs to revenue objects for accounting and reporting purposes, which is known as revenue allocation.

________ Occurs When Revenues Are Related to a Particular Revenue