allocation

(redirected from allocative)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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 ?
Using the time dimension of the data, we find that the allocative efficiency in the Korean manufacturing sector improved from 1982 to 1991 but then reversed its course and deteriorated significantly after 1992.
The output produced by the program covers a wide range of topics: productivity heterogeneity; allocative efficiency; granularity; and wage dispersion and its link to productivity.
jt]] which shows the amount of benefit a production unit can derive from economies of scale through access to a larger market and iv) the allocative efficiency change denoted by [[summation].
The technical, allocative and economic inefficiency scores were separately regressed on various socioeconomic and farm explicit factors for finding the sources of inefficiencies.
Antitrust-law-covered conduct can generate three categories of (organizational) allocative (as opposed to purely private) efficiencies--allocative "static efficiencies," allocative "dynamic efficiencies," and "reduction-in-economically-inefficient-duplication-related efficiencies"--that favor its antitrust legality.
The study focused to estimate technical, allocative and economic efficiency of tuberose cut-flower farmers in district Kasur.
Although distributional concerns have not been neglected entirely (Trebilcock 1975; Quinn & Trebilcock 1982; Kaplow 1986; Trebilcock 2014) mainstream law and economics is based firmly on the assumption that allocative efficiency and distributional equity should be achieved at different functional stages.
Masiye et al, 2006) estimated the technical, allocative and cost efficiency among 40 health centres in Lusaka, Central and Copper-Belt provinces of Zambia.
The result was suitable to conclusion of Battese [11], Sukiyono and Syam [13], on estimation of efficiency in technical, allocative and economic from various journals.
As for the allocative efficiency this rank is reversed: because of the uncertainty resulting from the first-price auctions' rules, they're expected to have a lower allocative efficiency compared to the second-price auctions.
Keywords: Technical efficiency, allocative efficiency, economic efficiency, DEA, cotton