Oracle Financials Cloud: General Ledger 2017 Implementation Essentials — Question 5

Which method is used to allocate total transaction price across performance obligations in Revenue Management?

Answer options

• A. Two Step Allocation Method
• B. Inverted Allocation Method
• C. Alternative Allocation Method
• D. Relative Allocation Method
• E. Residual Allocation Method

Correct answer: A

Explanation

The Two Step Allocation Method is the correct choice as it effectively divides the total transaction price into performance obligations based on their standalone selling prices. The other methods, while relevant in different contexts, do not specifically address the allocation of transaction prices as required in this scenario.