The method that ranks individual products in a bundle for revenue allocation is the ________.
A) stand-alone revenue-allocation method
B) incremental revenue-allocation method
C) unit-cost weighting method
D) physical-unit weighting method

Question

Quizplus · Accepted Answer

The method that ranks individual products in a bundle for revenue allocation is the incremental revenue-allocation method. This method considers the incremental revenue generated by each individual product in the bundle and allocates the revenue accordingly. The stand-alone revenue-allocation method only considers the revenue generated by each product if sold individually. The unit-cost weighting method and physical-unit weighting method allocate revenue based on the cost or physical quantity of each product in the bundle, respectively.

The Method That Ranks Individual Products in a Bundle for Revenue