What is Cost Allocation?
The process of distributing SaaS costs across different business units or teams based on their usage or benefit from the application.
Why it Matters
Accurate cost allocation ensures that each department is held accountable for its software spend, promoting transparency and cost control.
Benefits
- Transparent cost breakdown by department
- Facilitates accountability in spend
- Helps with budget forecasting
- Supports cross-departmental chargebacks
