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The Best Method to Determining Weights for the Stand-Alone Revenue-Allocation

Question 24

Multiple Choice

The best method to determining weights for the stand-alone revenue-allocation method is ________.


A) selling prices revenue-allocation method because the weights explicitly consider the prices customers are willing to pay for the individual products
B) unit cost revenue-allocation method because it can be used on all occasions
C) the direct revenue-allocation method since selling prices or unit costs are difficult to calculate for individual products
D) physical-units revenue-allocation method because the physical units explicitly value the prices customers are willing to pay for the individual products

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