Revenue Allocation Methods Multiple Choice Questions with Answers – PDF Download

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

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

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

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

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