Incremental revenue-allocation method

Incremental revenue-allocation method is method that ranks individual products in a bundle according to criteria determined by management (for example, sales), and then uses this ranking to allocate bundled revenues to the individual products.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Incremental revenue-allocation method. Method that ranks individual products in a bundle according to criteria determined by management (for example, sales), and then uses this ranking to allocate bundled revenues to the individual products.