Definition of Allocation Base from the PharmacyDictionary.in

Allocation Base

Synonyms or meaning of Allocation Base

Allocation Base refers to a systematic and rational method used in a pharmacy or other business to distribute costs from one department to several different departments. This method is crucial for accurately attributing costs to the departments that incurred them, thereby ensuring fair and accurate financial reporting and management. The allocation base can vary depending on the nature of the costs and the structure of the organization. Common examples of allocation bases include direct labor hours, machine hours, or direct labor costs.

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