Cost Accounting A Managerial Emphasis Study Set 1
Quiz 16: Revenue and Customer Profitability Analysis
The Stand-Alone Revenue Allocation Method Is a Weighted-Average Method
The stand-alone revenue allocation method is a weighted-average method.
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The incremental revenue-allocation method uses product specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products.
The first-ranked product is termed the incremental product in the incremental revenue-allocation method.
The ranking of products with regard to the incremental revenue allocation method can only be done by top management.
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