What is meant by Cost allocation?
The term "cost allocation" refers to the process of assigning and distributing costs to various cost centers, projects, or departments within a company. The goal is to allocate actual costs according to their cause and create a transparent cost structure.
Typical software functions in the area of "cost allocation":
- Cost center management: Creation and administration of cost centers
- Cost distribution keys: Definition and application of distribution keys for indirect costs
- Automatic cost assignment: Rule-based assignment of costs to cost centers
- Cost allocations: Calculation and implementation of cost allocations between departments
- Cost simulation: Creation of scenarios to analyze different cost distributions
- Reporting: Generation of cost reports and analyses
- Integration: Connection to financial accounting and controlling systems
