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 ?
In addition, numerous proposed and final partnership regulations were issued, concerning liability allocations, capital account revaluations and the status of tax-exempt-bond partnerships.
The principles outlined in the following example help define a range of reasonable allocations.
The States and Frontier Region Division against its total allocations of Rs 26410.
199 billion have been released for Prime Minister's Youth Hunarmand Programme out of its total allocations of Rs 20 billion, according to the data.
Part 8 M1 and M15, M19, M85 motorways, allocation 20,295,000 USD
To calculate the accuracy-related penalty for each party, multiply the tax due after final allocation of the erroneous items by the 20% penalty rate.
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.
701 billion have been allocated in the federal PSDP 2017-18 while Rs 46 million have been released for Pakistan Nuclear Regulatory Authority out of its total allocations of Rs 409.
482-1(a)(2) authorizes the IRS to "make allocations between or among the members of a controlled group if a controlled taxpayer has not reported its true taxable income.
Many pension funds right now consider themselves under-weighted in their allocations for real estate," said Steven A.