Key principles of reference model for cost allocation and profitability management

Abstract

The proposed conceptual model deals with two areas – Cost Allocation and Profitability Management. This paper shows some limitations of the model, its architecture – the individual layers of the model, key principles of cost allocation on which the proposed model is based, and factors which must be taken into account during the development and subsequent implementation of the model. In conclusion there are several ideas for the future development of the reference model.