Business Pitch Dictionary by pitch.dog
Margins, break-even & unit economics · Core

Cost allocation

Also called: allocation

ELI5

Assignment of shared costs to products, departments or other cost objects using a chosen basis.

Used in conversation

“Keep cost allocation on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Cost allocation” in financial models, budgets, board packs and investor materials when the discussion reaches margins, break-even & unit economics.

Why it matters: In margins, break-even & unit economics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

  • AllocationThe search label “Allocation” can route to both entries.
Sources & evidence · 4

Direct term-level sources and supporting source families.