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Allocate
(redirected from allocates)

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia 0.01 sec.
Allocate
On a balance sheet, to spread an expense over more than one accounting period. One of the most prominent examples of allocation is depreciation, which spreads the cost of an asset over a certain number of years.

allocate
1. To spread systematically a single monetary amount over a number of time periods, usually years. For example, depreciation allocates the cost of a capital asset over its useful life.
2. To distribute cost or revenue throughout a number of operations or products. For example, a business must decide how to allocate the costs of running its headquarters over all its operations to determine the profitability of each of those operations.


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752-2 allocates a partnership recourse liability to a partner if and to the extent the partner--or a related person--bears the economic risk of loss.
Interior and BLM are also developing computer models--based in part on the Forest Service's--to help allocate funds; of Interior's other agencies, BIA allocates funds based on past regional performance in reducing fuels, FWS uses a computer model, and NPS relies on historical funding levels that were based on a now-discontinued model.
If the accounting system arbitrarily allocates costs to a job rather than allocating costs that reflect the true inputs, the firm will not be competitive when bidding jobs and will be measuring performance incorrectly.
 
 
 
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