Distinguish between the$$ stand$-$alone revenue$-$allocation method and the incremental$$ revenue$-$allocation method.

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Part $1$

The

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$$

incremental

stand$-$alone

$$revenue$-$allocation method uses$$ product$-$specific information on the products in the bundle as weights for allocating the bundled revenue to the individual products.

The

$$

$$

incremental

stand$-$alone

$$revenue$-$allocation method ranks individual products in a bundle according to criteria determined by management and then uses this ranking to allocate bundled revenue to the individual products.