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 on the products in the bundle as weights for allocating the bundled revenues to the individual products. This means that the revenue is distributed among the products in proportion to their individual values, making it a more accurate method of allocating revenue. Hence, option A is the correct answer. Options B, C, and D are incorrect as they do not describe the stand-alone revenue-allocation method accurately.

The Stand-Alone Revenue-Allocation Method ________