Cost Allocation Review Checklist ( FINANCE )

This checklist is designed to ensure accurate and effective allocation of costs within the organization, helping to identify cost centers and improve financial planning.

• Identify Cost Centers

  List all cost centers within the organization that require cost allocation.

• Gather Relevant Data

  Collect financial data associated with each cost center for the review period.

• Analyze Cost Drivers

  Determine the key drivers associated with costs in each cost center.

• Allocate Costs

  Distribute costs to the appropriate cost centers based on the analysis of cost drivers.

• Review Allocation Methodology

  Ensure that the cost allocation methods used align with organizational policies and are justified.

• Validate Allocations

  Cross-check allocated costs with department heads to ensure accuracy.

• Document Findings

  Record the results of the cost allocation review and any discrepancies found.

• Prepare Summary Report

  Create a summary report detailing the cost allocations and any recommendations for future periods.

• Conduct Review Meeting

  Schedule a meeting with relevant stakeholders to discuss the findings and gather feedback.

• Implement Improvements

  Identify and implement any process improvements based on the review findings.