What is the definition of "revenue allocation"?


Quick Answer

Revenue allocation is the distribution or division of total income, or revenue, in a business, corporate or government structure. It involves a complex process that entails how and where to allocate revenues in order to ensure the viability of departments and maintain the operating structure of the organization.

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What is the definition of "revenue allocation"?
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Full Answer

Typically, revenue allocation involves proper distribution of revenues across all areas of a country, business or organization. The amount allocated to a specific area depends on the performance, current condition and challenges of that particular area. The management or a special committee is responsible for identifying and assigning revenues to different areas of an organization.

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