Cost Allocation
/ˈkɒst ˌæləˈkeɪʃən/
Definitions
- (n.) The process of assigning or distributing costs among various departments, projects, or entities, often for legal, financial, or regulatory reporting.
The cost allocation method used by the company must comply with government accounting standards.
See also
Commentary
Cost allocation is crucial in legal and financial contexts for transparency and compliance, particularly in regulated industries and government contracts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.