Revenue Allocation Methods Multiple Choice Questions with Answers – PDF Download

MCQ 1: The first ranked product, in incremental revenue allocation method, is classified as:

1. primary product
2. First incremental product
3. Second incremental product
4. Third incremental product

MCQ 2: The third ranked product in incremental revenue-allocation method is known as:

1. primary product
2. First incremental product
3. Second incremental product
4. Third incremental product

MCQ 3: In stand-alone revenue-allocation method, the type of weights available for this method are:

1. selling prices as weights
2. unit costs as weights
3. physical units as weights
4. all of above

MCQ 4: The method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as:

1. step down allocation method
2. stand-alone revenue allocation method
3. incremental revenue allocation method
4. revenue mix allocation method

MCQ 5: The method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as:

1. step down allocation method
2. stand-alone revenue allocation method
3. incremental revenue allocation method
4. revenue mix allocation method