# Cost Allocation Dashboard

Review shared cost pools, allocation drivers, allocated costs and segment profitability in one dashboard, with reconciliation back to consolidated financial statements for management reporting and review.

- Canonical: https://finamodel.com/excel-dashboard/cost-allocation
- Excel download: https://finamodel.com/templates/cost-allocation.xlsx

## About this dashboard

The Cost Allocation Dashboard brings shared overhead into a clear view by business unit or product. Review cost pools for headquarters, IT, facilities and marketing, then see how driver-based allocations affect segment revenue, direct COGS, allocated costs and profit. The dashboard helps distinguish direct performance from the full cost responsibility assigned to each segment.

The supporting workbook contains primary and secondary allocation steps. Drivers can include headcount, revenue, square footage, transaction volume or direct cost, with support functions allocated to operating segments and other service centers. An allocation reconciliation checks that total allocated costs equal costs incurred, while sensitivity analysis shows how changing drivers affects segment profitability.

Use the dashboard in management reporting, segment profitability reviews, pricing discussions and make-or-buy analysis. Controllers and finance teams can identify units relying on corporate subsidies, compare fully loaded economics and give business-unit managers a consistent view of overhead responsibility.

## What's included

- Shared cost pools by category
- Driver-based allocation by segment
- Primary and secondary allocation outputs
- Allocated segment P&L and profit
- Consolidated cost reconciliation
- Driver sensitivity for profitability

## Frequently asked questions

### What does the Cost Allocation Dashboard show?

It shows shared cost pools, allocated costs and segment profitability by business unit or product. The view connects overhead assignment with segment revenue, direct costs and profit, helping management see the economics of each segment after its allocated share of corporate resources.

### Which allocation drivers are supported?

The model supports headcount, revenue, square footage, transaction volume and direct cost as allocation drivers. Different pools can use different drivers, so HR, facilities, IT or other shared functions can be assigned according to the activity that best represents consumption.

### What are primary and secondary allocations?

Primary allocation distributes shared pools to cost centers or segments. Secondary allocation then distributes service-center costs to operating segments and, where needed, to other support functions. This step-down structure captures internal services before the final segment profitability view.

### Does the dashboard reconcile allocated costs?

Yes. The supporting workbook includes an allocation reconciliation that checks total allocated costs against total costs incurred. This helps detect leakage and gives the dashboard a traceable connection to consolidated financial statements and the underlying cost pools.

### How can the dashboard support pricing decisions?

Use fully loaded segment margins to understand the cost floor behind a product, channel or business unit. Comparing profitability after allocated overhead can inform pricing, discount guidelines, outsourcing analysis and remediation plans for segments that depend on corporate subsidies.

## Related dashboards

- [Financial Health Dashboard](https://finamodel.com/excel-dashboard/financial-health)
- [Board Reporting Pack Dashboard](https://finamodel.com/excel-dashboard/board-reporting)
- [Cash Flow Dashboard](https://finamodel.com/excel-dashboard/cashflow)
- [Income Statement Dashboard](https://finamodel.com/excel-dashboard/income-statement)