Even though allocations must be done, people don't like them. The points below give an indication of why. Follow this link to see how OverheadCAM can help.
Time.The most urgent problem is time. Allocations take a lot of time for big complex organizations. This drags out the time for financial close, which is so critical for timely internal and external reporting.
Accuracy. Another big problem. Without Reciprocal Allocation and without sufficient flexibility, allocations are not as accurate as they should be. Decisions can't be any better than the information they are based on
Transparency. It is difficult to understand where allocations come from and how they are derived.
Trust. Sometimes people feel they are getting an unfair share of support costs. Sometimes people take the position that cost figures are not accurate, so there is no point in making decisions based on cost. Neither attitude is helpful in a corporate setting.