Cost Allocation Plans

Cost allocation is an important step in financial reporting and understanding business profitability. Whereas budgeting determines how much money you spend, cost allocation indicates how you spend money, by assigning costs to cost objects.

HBC CPAs’ cost allocation services support business owners throughout the process of cost allocation, helping them to determine the appropriate categorization of cost objects based on the unique factors that affect your business. With your profitability and success in mind, we will develop a cost allocation plan so that you can better understand how your business uses its resources.

Using a CPA firm for cost allocation planning may be especially helpful for nonprofits. Often, nonprofit budgets are largely composed of donations and grants that have been allocated to a particular objective or initiative within the organization. HBC CPAs can help nonprofits develop a well-organized plan that will reduce the constant challenge of allocating and reallocating costs.