allocation

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Related to allocations: Asset Allocations

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.
Allocation and Apportionmentclick for a larger image
Fig. 7 Allocation and Apportionment . Budgeted production costs: departmental analysis.

allocation

  1. the breakdown of COSTS (and REVENUES) between different products, functions or company departments where it is possible to attribute costs (and revenues) directly to the departments where the cost (revenue) arises. For example, in analysing costs, the depreciation OVERHEADS of factory departments can be allocated precisely between the production departments where the specific fixed assets are located. Such allocations help in tracing responsibility for costs to the managers responsible, as well as assessing the profitability of different departments or products. Fig. 7 shows a typical departmental revenue/cost breakdown where some costs are precisely allocated while others are apportioned on an equitable basis. See BUDGETING, STANDARD COST.
  2. the process of assigning or ‘earmarking’ materials which are in STOCK in order to fulfil specified product orders. The stock of materials that has not been currently allocated is referred to as the ‘free balance’, which is available for allocation to future orders.
References in periodicals archive ?
704(c) allocations was reasonable, provided that the contribution or revaluation of property and its corresponding allocation were not made to shift the tax consequences of the BIG or BIL among the partners in a manner that substantially reduced the aggregate tax liability.
It also provides a level of detail that can make the resulting allocations more defensible.
2632(c) was enacted to simplify the allocation of the GST exemption process and prevent situations in which the allocation was intended to be made, but was not.
Under the proposed regulations, headquarters staff (6) will generally be allocated to all lines of business, and this allocation will make it more likely that the employer will be unable to meet the 90-oercent threshold requirement (since headquarters staff would not be providing services exclusively to a line of business).
Evergreen Envision Growth Fund seeks to provide long-term capital growth through the following allocation parameters:
11 /PRNewswire/ -- Comshare Retail, a leading provider of merchandise planning and performance tracking systems for retail organizations, today enhanced its market-leading ARTHUR product family with the announcement of a platform independent client/server retail application, the ARTHUR Allocation System.
Its effectiveness is questionable, however, when dealing with asset allocations for individual investors in retirement, because it does not consider longevity risk and the portfolio's random time horizon.
To the contrary, P's uncontradicted evidence established that in determining cost allocations, unrelated parties would not include any cost related to the issuance of options.
Traditionally, pension fund real estate allocations have been somewhere around 4%, but current targets can be as high as 8% to 10%.
Automatic rebalancing--returning the employee's fund allocations to their initial percentages after a period when investments performed at different rates--ensures participants maintain their original allocations.
Figure 1 shows the linkages that must be managed if capital allocation is to support strategy and value growth.