If management wants to choose a method of revenue allocation that best captures the "benefits received" by customers then they would use ________ to allocate revenue to products in a bundle.
A) stand-alone revenue -allocation based on unit costs
B) stand-alone revenue-allocation based on selling prices
C) stand-alone revenue-allocation based on physical units
D) stand-alone revenue-allocation based on unit costs

Question

Quizplus · Accepted Answer

Stand-alone revenue-allocation based on selling prices would be the best choice as it reflects the benefits received by customers in terms of what they are willing to pay for each product in the bundle. It takes into account the relative value customers place on each product and allocates revenue accordingly.

If Management Wants to Choose a Method of Revenue Allocation