Transportation Cost Allocation Tool
Fairly allocate shared transportation costs across multiple groups based on the number of passengers in each.
Accurately price transportation services for different client groups.
Justify departmental or client cross-charges with clear data.
Ensure all transportation costs are accurately billed to prevent losses.
Understanding Weighted Cost Allocation
When multiple groups share a single resource, a simple equal split isn't always fair. If the Sales department has 40 people on a bus and the Marketing department only has 10, should they pay the same amount? Weighted allocation solves this problem.
This method first calculates a 'per-unit' cost (in this case, per passenger) and then allocates the total cost to each group based on their specific usage.
Formula: Group's Allocated Cost = (Total Cost / Total Passengers) × Number of Passengers in Group
This approach provides a much more equitable and defensible way to distribute costs, making it an essential tool for managing budgets for multi-client events, inter-departmental activities, or complex conference logistics.
Frequently Asked Questions
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