Meaning of “cost allocation” in the English Dictionary

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"cost allocation" in Business English

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cost allocationnoun [ U ]

uk us also cost apportionment

ACCOUNTING the process of calculating the various costs of making a product, providing a service, etc. and which department within a company or organization should pay each of these costs:

The plan proposed new cost allocation guidelines for dividing the costs between the various cost centres.

(Definition of “cost allocation” from the Cambridge Business English Dictionary © Cambridge University Press)