Method which determines weights of cost allocation by considering cost of each user as separate entity is known as
A
bundled products allocation method
B
variable cost allocation method
C
stand-alone cost allocation method
D
incremental cost allocation method
Correct Answer: stand-alone cost allocation method
Method which determines weights of cost allocation by considering cost of each user as separate entity is known as stand-alone cost allocation method. Cost allocation methods are designed to allocate costs not necessarily associated with a product, to the appropriate products to get a realistic estimate of costs so that a proper price can be determined for a particular product.