Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as
A. step down allocation method
B. stand-alone revenue allocation method
C. incremental revenue allocation method
D. revenue mix allocation method
Answer: Option B
Solution (By Examveda Team)
Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as stand-alone revenue allocation method. Revenue Allocation Method uses product-specific information on the products in the bundle as weights for allocating the bundled revenues to the individual products.
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