Question

Describe how companies are increasingly facing​ revenue-allocation decisions.

A.

Companies increasingly are selling packages of multiple products or services for a single price. Revenue allocation is required if the company wishes to conduct individual product profitability studies.

B.

Companies increasingly are selling packages of one product or service for a single price. Revenue allocation is required if the company wishes to conduct packaged product cost studies.

C.

Companies increasingly are selling packages of multiple products or services for a single price. Revenue allocation is required if the company wishes to conduct packaged product cost studies.

D.

Companies increasingly are selling packages of one product or service for a single price. Revenue allocation is required if the company wishes to conduct packaged product profitability studies.

Answer 1

Companies increasingly are selling packages of multiple products or services for a single price. Revenue allocation is required when managers in charge of developing or marketing individual product in a bundle are evaluating using product specific revenues. It is also required if company wishes to conduct packaged product cost studies. This is how companies are increasingly facing revenue - allocation decisions.

Therefore option C

Companies increasingly are selling packages of multiple products or services for a single price. Revenue allocation is required if the company wishes to conduct packaged product cost studies.

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