Best Practices for Allocating Costs
The Need for Chargeback Cost Allocations
Most organisations run Shared Services units to realize economies of scale and unlock value by centralizing 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 organizationally aligned behavior. The most equitable and defendable basis for allocations is based on real world consumption.
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