Cost allocation

IGC-DEFINITION (abbreviated)

Cost allocation / Umlagen
Cost allocation refers to the charging of cost centers or cost objects with structure costs from cost centers upstream without any direct or causal connection. Structure costs are thus distributed in a proportional way.

If structure costs are allocated (e.g. building, material administration, factory administration, sales and general administration costs), it is admittedly possible to calculate the manufacturing costs and the full costs, but no additional transparency is gained.

from: IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)

Source

IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010

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