allocation

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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 ?
The spatial scope--which may range from a housing block to a neighborhood or an entire city--defines the type of allocative and authoritative resources relevant for a specific context.
Where, i showed ith open field tomato farmer, Ei described the technical, allocative, and economic inefficiency, Ei* depicted the latent variable, Z1i was education (years), Z2i was family size (no.), Z3i was open field tomato experience (years), Z4i was contact with extension agents (no.), Z5i was open field tomato area (acre), Z6i was vegetable market distance (km) from ith farm, Z7i was dummy variable for credit availability, ss's described unknown parameters and ui denoted the error term.
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.
In order to assess the importance of allocative efficiency in Italy, we follow Olley and Pakes (OP) (1996) and decompose aggregate labour productivity into the unweighted firm-level average productivity and the OP covariance term between labour productivity and size.
South Africa's exceptionalism aside, the modus operandi of competition laws, in the North and South alike, is to structure markets built on the economic model of perfect competition to attain allocative efficiency.
Thus, in equation (5), TFP growth is decomposed into: i) TP that measures the shift in production frontier over time; ii) technical efficiency change (-d[u.sub.it]/dt) that measures the shift in production towards the known production frontier; iii) effect of scale change [([??]-1) [[summation].sub.j][[lambda].sub.j], [[??].sub.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].sub.j]([[lambda].sub.j]-[S.sub.j])[[??].sub.jt].
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.
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.
Lovell (et al, 1990) argues that slacks may essentially be viewed as allocative inefficiency in that they measure the resource under or overuse.
Table above indicated that average farmer in cacao+coconut+patchouli intercropping pattern farm has met technical, allocative, economic efficiency, obtained from a destructing combination of production factor used in process of production.
The entry cost, that is not the revenue of the auctioneer, decreases the profit of the winner, and thus the total surplus; hence the introduction of the nonrefundable participation cost should lower the allocative efficiency, in terms of the percantage of the maximal total surplus reached.