Allocation

1) A distributionOutbound logistics, from the end of the production... of costs using calculations that may be unrelated to physical observations or direct or repeatable cause-and-effect relationships. Because of the arbitrary nature of allocations, costs based on cost causal assignmentA distribution of costs using causal relationships... are viewed as more relevant for management decision-making. 2) Allocation of available inventory1) Raw materials, work in process, finished goods,... to customer1) In VMI, the trading partner or reseller, i.e., ... and production orders.