The method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as ___________?
Correct answer: B. stand-alone revenue allocation method
- A. step down allocation method
- B. stand-alone revenue allocation method
- C. incremental revenue allocation method
- D. revenue mix allocation methodCompare Credit Cards
Explanation
The stand-alone revenue allocation method uses each product's specific stand-alone revenue or selling-price information as the weight for allocating bundled revenue. The incremental method instead ranks products and allocates revenue in sequence.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
A particular term for which specific revenue measurement is required is known as __________?
Support department cost allocation method which makes no difference between variable and fixed costs is classified as ___________?
If the employees of division A work for 8000 hours for $90 per hour, then the rate must be paid in division B in accordance of single rate method will be ___________?
The cost object user, who is ranked first in incremental cost allocation method is known as _________?
In incremental cost allocation method, the cost object user who is ranked third in ranking order is classified as ____________?
The first ranked product, in incremental revenue allocation method, is classified as ___________?