1) A distribution 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 assignment are viewed as more relevant for management decision-making. 2) Allocation of available inventory to customer and production orders.

Inventory Counting 101: Your Simple Guide to Better Stock Management
Running an ecommerce business? Then you know inventory is everything. But here’s the question: do you actually know how much inventory you have right now? Many business owners think as long as they have enough products to sell, the exact count doesn’t matter. That’s a costly mistake. Accurate inventory counts