1. bundled products allocation method
  2. variable cost allocation method
  3. stand-alone cost allocation method
  4. incremental cost allocation method
5 views

1 Answers

Answer: Option 3

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.

5 views