cost allocation

USAGE SUMMARY

"cost allocation" is a correct and usable phrase in written English.
It is commonly used in accounting and business contexts to describe the process of assigning costs to different departments, products, or activities. Example: The accounting department is responsible for the accurate cost allocation of expenses to each department within the company.

✓ Grammatically correct

Academia

Science

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Unallowable costs have been adjusted for in allocating costs as indicated in the cost allocation plan.

Cornell University

The central service cost allocation plan provides that process.

Cornell University

Procedure for cost allocation of power and water is described.

Desalination

But as auctions become a bigger factor in pricing, the importance of cost allocation declines.

Harvard Business Review

The Price of Stability for Network Design with Fair Cost Allocation.

Cornell University

Topics include matching, bargaining, cost allocation, market games, voting games, and games on networks.

Yale University

Customers will need to contact CUIT to add cost allocation tags.

Columbia University

This paper gives insights into the challenges of cost allocation within electricity grids and intends to help to design an adequate and fair cost allocation mechanism.

Energy Policy

Tardos, T. Wexler, T. Roughgarden, The price of stability for network design with fair cost allocation, FOCS, '04.

Cornell University

Allocated central service costs will be supported by the summary table included in the approved central service cost allocation plan.

Cornell University

The course will explore various topics in Cooperative Game Theory with applications to fair division, cost allocation and matching.

Yale University

Expert writing Tips

Best practice

When writing about "cost allocation", be specific about the method used and the rationale behind it to ensure transparency and accuracy.

Common error

Don't just say "costs were allocated." Instead, explain how the allocation was performed (e.g., "costs were allocated based on usage metrics").

Linguistic Context

The phrase "cost allocation" functions as a noun phrase, typically used as a subject or object in a sentence. It describes the process of assigning costs to various activities, departments, or products, as shown in the Ludwig examples.

Expression frequency: Very common

Frequent in

Academia

30%

Science

35%

Formal & Business

15%

Less common in

News & Media

20%

Ludwig's WRAP-UP

In summary, "cost allocation" is a grammatically sound and frequently employed noun phrase primarily used in academic, scientific, and business contexts. As Ludwig confirms, it accurately represents the methodical assignment of costs. It's crucial to ensure accuracy when discussing "cost allocation", focusing on clear descriptions of the allocation methods employed. Ludwig's examples highlight its usage in diverse fields such as energy, accounting, and network design, emphasizing its versatility and importance in financial and operational analysis.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

expense distribution

Focuses more on the act of distributing expenses rather than the systematic assignment implied by "allocation".

budget apportionment

Highlights the division of a budget, specifically emphasizing financial resources.

resource assignment

Broader term referring to the assigning of resources, not exclusively costs.

overhead distribution

Specifically refers to distributing overhead costs, limiting the scope to indirect expenses.

financial allotment

Emphasizes a predetermined amount of financial resources designated for a specific purpose.

burden sharing

Implies distributing the burden of costs, often in a collaborative context.

charge assignment

Focuses on assigning charges or fees, a more specific type of cost.

expenditure division

Highlights the act of dividing expenditures, emphasizing the process of splitting costs.

price structuring

Related to setting prices based on allocated costs, emphasizing the structure of pricing models.

funds disbursement

Focuses on the act of paying out funds, implying a more direct allocation of money.

FAQs

How is "cost allocation" used in accounting?

"Cost allocation" in accounting is the process of assigning indirect costs to cost objects, such as products, departments, or projects, based on a reasonable and consistent method. It's crucial for accurate financial reporting and decision-making.

What are some common methods for "cost allocation"?

Common methods for "cost allocation" include direct allocation, step-down allocation, and activity-based costing (ABC). The choice of method depends on the complexity of the organization and the accuracy required.

What's the difference between "cost apportionment" and "cost allocation"?

While the terms are often used interchangeably, "cost allocation" generally refers to assigning costs to specific cost objects, whereas "cost apportionment" often involves dividing costs between different departments or activities before further allocation takes place.

Why is accurate "cost allocation" important for businesses?

Accurate "cost allocation" helps businesses understand the true cost of their products or services, make informed pricing decisions, improve profitability analysis, and ensure compliance with accounting standards and regulations.