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Business Definition for: allocate
allocate
- spread a cost over two or more accounting periods usually based on time. An example is assigning the prepaid cost of a three-year insurance policy by one-third each year.
- charge a cost or revenue to a number of departments, products, processes, or activities on some rational basis. For example, a cost may be assigned to divisions of a company based on sales.
- distribute the cost associated with the acquisition of two or more items based on their relative fair market values. This relates to a lump-sum purchase .
allocate
- to distribute anything for use, including one's time or money.
- in accounting, to spread a single cost over a number of products,customers, people, or time. For example, depreciation accounting attempts to allocate the cost of a wasting asset over its estimated useful life.
Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
