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Cost Allocation: A thorough approach to effective financial management

Our Cost Allocation Module is an advanced software solution that helps companies streamline and automate their cost allocation processes. It is designed to easily integrate with existing systems and offers a wide range of features that make it easy for companies to allocate costs between departments.
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Advantages of a Cost Allocation Module

Some of the key features and benefits offered by the Cost Allocation Module include:
Flexible and adaptable
allocation

The module allows companies to adapt the distribution rules according to their specific needs and business model, which ensures a more accurate and fair distribution of costs.

Strengthened communication and collaboration

The module promotes transparency and open dialogue between departments by making it easy to share cost information and work together to find solutions to cost-related challenges.

Automated cost allocation

The module's advanced algorithms help automate the cost allocation process, reducing the manual effort and time required to properly allocate costs.

Real-time analysis
and reporting

With integrated reporting and analysis tools, the module allows you to monitor and evaluate costs in real time, making it easier to identify areas of potential for improvement and make well-informed decisions.

What are the customers saying?


“In 2011, we were hitting the limit with our Excel model, which had become very complex. We entered into a “Master of Science” collaboration with the purpose of converting our Excel to Jedox within 3 months. Today we use Jedox in the 5th year as our group budget and reporting platform”

Jan Knudsen
Jan KnudsenHead of Business
ABB

“Rambøll chose Jedox as a group budget and forecast solution for all 500 budget users worldwide – due to self-service, flexibility, user-friendliness and price – and for the first time ever, Rambøll has submitted its consolidated group budget on time”


Christiane Johansen
Christiane JohansenDirector Global Support
Ramboll
”We chose a partnership with Qbit in August 2016 based on using Jedox to upgrade our Group forecasts to more automatic and modern management. We see great opportunities. We see great opportunities in the collaboration in terms of eliminating / upgrading the group’s many complex and manual spreadsheets, with the more flexible and user-friendly Jedox.”
Anders Egeblad
Anders Egeblad Head of Corporate
Tryg Group Forecasting
Read all customer testimonials

Functions in the Cost Allocation Module:
Direct Method, Step Down (Waterfall), Reciprocal og
Big data Management.

Our Cost Allocation Module includes a number of features designed to meet the needs and preferences of different companies when it comes to cost allocation.

Four of the most important cost allocation methods included in the module are Direct Method, Step Down (Waterfall), Reciprocal and Big Data Management. Each of these methods and their use are described below.
Direct Method:
The Direct Method is the most simple and straightforward method for cost allocation.
This method involves direct allocation of costs from support departments to operating departments, without taking into account the costs incurred between support departments.

The Direct Method focuses on minimizing complexity and making cost allocation more understandable and transparent.
Advantages of the Direct Method:

  • Simple and easy to understand
  • Requires less time and resources to implement and maintain
  • Provides an overview of the costs for each operating department
Step Down (Waterfall):
The Step Down or Waterfall method is a more advanced cost allocation method that takes into account the costs between support departments. In this method, costs from a support department are distributed to both operations departments and other support departments in a sequential order. Once a support department's costs have been distributed, the relevant department is no longer taken into account in subsequent cost distributions.
Advantages of Step Down (Waterfall):
  • More accurate and fair distribution of costs
  • Considers costs between support departments
  • Provides a detailed overview of costs for both operations and support departments
Reciprocal Method:
The Reciprocal method is the most comprehensive and accurate cost allocation method that takes into account all the mutual costs between the support departments. In this method, costs are allocated between all support departments and operating departments until there are no more mutual costs to allocate. The reciprocal method may require more advanced mathematical models and calculations, but provides the most accurate cost distribution.
Advantages of the Reciprocal Method:
  • Highest accuracy and fairness in cost distribution
  • Considers all mutual costs between support departments
  • Provides the most detailed and accurate overview of costs for all departments

Maybe you are in doubt or want to
have some good advice!

By implementing our module, companies can revolutionize their financial management and achieve a number of benefits, such as improved cost transparency, optimized resource allocation and more effective decision-making. With this module, companies are better equipped to navigate the complex landscape of cost allocation and ensure their long-term success and growth.
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Technical PDF about Cost Allocation

This technical documentation describes a solution for cost allocation. It contains a combination of different methods and data distribution approaches. The solution is designed to provide a clear understanding of how cost allocation works and how it can be implemented. Read more in the accompanying PDF.
Download the file here (English)

Thousands of companies have already chosen Jedox!

We offer the opportunity to try Jedox for free – Our consultants are always ready with instructions for using the Jedox software or ready to answer any question you might have.
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2024

Diamond Partner

Qbit is appointed as Diamond Partner at Jedox

Solutions that make sense
We have some of the most talented consultants in Europe, who have many years of experience in implementing budget and business intelligence solutions at both public and private companies.
Jedox voted best in testing by BARC 2023:
Europe's largest CPM-survey – Jedox leading in:
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  • Self-service
  • User friendly
Read more about BARC 2023

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