Best Practices for Allocating Costs
The Need for Chargeback Cost Allocations
Most organisations run Shared Services units to realise economies of scale and unlock value by centralising processes.
In order for Business Units to determine true profitability, their usage of Shared Services must be determined. A charge back mechanism facilitates this and aids in driving organisationally aligned behaviour. The most equitable and defendable basis for allocations is based on real world consumption.
Follow the link to download the full report.