Cost Allocation & Activity-Based Costing
The IC Tool performs structured cost allocation calculations across legal entities, activities, and business units using accounting-based data and predefined allocation logic. It provides a controlled and repeatable framework for allocating direct and indirect costs in line with the group’s operating and transfer pricing model, supporting standardised allocations across periods while reducing reliance on fragmented spreadsheet models and manual allocation processes.
What the IC Tool does?
✔ Import of cost data by entity and cost category
✔ Defining and maintaining allocation drivers
✔ Allocating costs from cost-owning entities
✔ Supporting multi-step and layered allocations
All reconciliation logic is based on the same accounting-based dataset used for intercompany pricing and financial impact analysis.
Built for scaleups... used by:
& others
The IC Tool supports a broad range of allocation drivers to reflect different business and operational realities, allowing organisations to design allocation methodologies that are proportionate, transparent, and aligned with activity-based costing principles, while enabling consistent application over time and clear documentation of why and how costs are distributed across entities, functions, services, or activities.
The IC Tool produces clear and auditable allocation outputs designed to support operational analysis, governance, and internal review, with full traceability from original accounting costs through to final allocated results, enabling users to understand cost flows, validate allocation steps, and reconcile allocations back to source inputs and drivers in a structured and repeatable manner.
Allocated cost amounts by legal entity, showing how shared and central costs are distributed across the group.
Cost Allocation by Entity
Allocated cost amounts by activity or business unit, supporting activity-based costing and performance analysis.
Cost Allocation By Driver
Transparent allocation schedules, clearly showing drivers, allocation keys, and calculation steps.
Cost Identification by Entry
Full traceability of allocated costs, from original accounting entries to final allocation outcomes.
The IC Tool is typically used to support structured cost allocation and analysis across entities and operating models, enabling consistent cost recharges, activity-based costing, and alignment with transfer pricing requirements, while providing a clearer basis for reconciliation, governance, and explanation of cost movements over time using standardised drivers and embedded allocation logic.
Allocation of shared service and central function costs, ensuring consistent distribution across entities and business units.
Activity-based costing for complex operating models, including multiple services, functions, or activities.
Support for transfer pricing cost base calculations, such as cost-plus intercompany transactions.
Internal cost analysis and reconciliation, supporting explanation of cost movements and internal review.
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