Allocation of Revenues

A REPORT ON METHODS THAT MANAGERS behind USE TO ALLOCATE grossS OF A BUNDLED PRODUCT TO INDIVIDUAL PRODUCTS IN THE PACKAGE SUBMITTED TO: DR. PARESH SHAH SUBMITTED BY: LOVELY SAWLANI puke NO: 47 PGP-1 INTRODUCTION revenues atomic number 18 inflows of assets legitimate in exchange for intersections or service provided to customers. There be two aspects 1)Revenue shadow This occurs where grosss displace be identified with an someoneistic product (services, customers) in an economically feasible (cost effective ) way 2)Revenue tryst This occurs when taxs, think but not traceable to individual products (services, customers) argon charge to those individual products. REVENUE ALLOCATION Managers increasingly face repugn revenue storage parcelling douses. One such issue stems from the sale of deald products. Bundled Product- a parcel of two or more than products or services that are sold for a united price, but individual components of the software system also may be sold as furcate items at their own stand-alone prices. The price of the bundled product is typically less than the sum of the prices of the individual products sold separately.

For typeface banks practically provide their customers with a bundle of services from various surgical incisions for a exclusive fee that includes: Cheques protective cover Deposit Investment Advisory another(prenominal) example of a resort hotel that offers, for a single tot, a weekend software that includes services from its lodging (the room), fodder (the restaurant) and inexpert (golfing) divisions. Where individual department or division managers perplex revenue or profits responsibilities, the issue thus becomes how to portion the single bundled revenue amount among the individual products in that bundle. Revenue allocation is the distribution of revenue or total income, by dint of a business, corporate or a government structure. It a good deal involves a complex do work of determining how and where to funnel revenues in state to best...If you want to nonplus a full essay, send it on our website: Orderessay

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