Question :
11) The stand-alone revenue allocation method a weighted average method. : 1186073
11) The stand-alone revenue allocation method is a weighted average method.
12) 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.
13) The first-ranked product is termed the incremental product in the incremental revenue-allocation method.
14) ________ is a package of two or more products or services, sold for a single price, where the individual components of the package may also be sold as separate items, each with their own stand-alone price.
A) A revenue product
B) A byproduct
C) A bundled product
D) A joint product
E) A product package
15) ________ occurs where revenues, related but not traceable to individual products (service, customer, and so on), are assigned to those individual products.
A) Revenue tracing
B) Revenue allocation
C) A bundled product
D) Joint product costing
E) Revenue shedding
16) Which of the following statements is true?
A) Joint product allocation results in more accurate assignment of revenues to products than does revenue allocation.
B) Revenue allocation results in more accurate assignment of revenues to products than does revenue tracing.
C) Revenue tracing results in more accurate assignment of revenues to products than does revenue allocation.
D) Revenue allocation results in more accurate assignment of revenues to products than does joint product allocation.
E) Joint product allocation results in more accurate assignment of revenues to products than does revenue tracing.
17) Which of the following statements is true?
A) The two main classes of revenue allocation methods are the step-up method and the incremental method.
B) The stand-alone revenue allocation method ranks the individual products in a bundle and then uses this ranking to allocate the bundled revenues to these individual products.
C) A bundled product is a package of two or more products or services, sold for multiple prices.
D) The issues discussed with revenue tracing and sales returns do not apply to cost tracing.
E) The two main classes of revenue allocation methods are the stand-alone method and the incremental method.
18) ________ uses product-specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products.
A) The stand-alone revenue allocation method
B) The averaging approach
C) The incremental revenue-allocation method
D) The joint production costing method
E) The weighted averaging approach
19) ________ ranks the individual products in a bundle and then uses this ranking to allocate the bundled revenues to these individual products.
A) The stand-alone revenue allocation method
B) The averaging approach
C) The incremental revenue-allocation method
D) The joint production costing method
E) The weighted averaging approach
Use the information below to answer the following question(s).
John’s Video Game Outlet encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the video games are sold as a single package. Managers at John’s are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone prices of its individual products is as follows:
Stand-Alone Sales Price
Package
Game A
Game B
Game C
Packaged
Price
Package 1
$25
$30
N/A
$44
Package 2
25
N/A
$45
56
Package 3
25
30
45
76
The unit manufacturing costs are $3.60, $4.00, and $5.00 for games A, B, and C, respectively.
20) Calculate the allocation of packaged price for Game A in Package 1, using selling prices as the base.
A) $14.00
B) $20.00
C) $30.00
D) $25.00
E) $35.00
