Allocation of Revenues

A
REPORT ON


METHODS THAT MANAGERS CAN USE TO
ALLOCATE REVENUES
OF A BUNDLED PRODUCT TO INDIVIDUAL PRODUCTS IN THE PACKAGE


SUBMITTED TO:
DR. PARESH SHAH

SUBMITTED BY:
LOVELY SAWLANI
purge NO: 47
PGP-1


INTRODUCTION
Revenues are inflows of assets received in exchange for intersections or service provided to customers.
There are two aspects
1)Revenue shadow This occurs where grosss can be identified with an individualistic product (services, customers) in an economically feasible (cost effective ) way
2)Revenue Allocation This occurs when taxs, think but not traceable to individual products (services, customers) are charge to those individual products.

REVENUE ALLOCATION
Managers increasingly face challenging revenue storage allocation issues. One such issue stems from the sale of bundled products.
Bundled Product- a package of two or more products or services that are sold for a undivided price, but individual components of the bundle also may be sold as separate 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 often provide their customers with a bundle of services from various departments for a single fee that includes:
Cheques
Security Deposit
Investment Advisory
another(prenominal) example of a resort hotel that offers, for a single amount, a weekend package that includes services from its lodging (the room), food (the restaurant) and inexpert (golfing) divisions. Where individual department or division managers have revenue or profit responsibilities, the issue thus becomes how to allocate the single bundled revenue amount among the individual products in that bundle.


Revenue allocation is the distribution of revenue or total income, through a business, corporate or a government structure. It often involves a complex process of determining how and where to funnel revenues in state to best...If you want to get a full essay, order it on our website: Orderessay



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