What is the difference between cost allocation and cost distribution?

Christian Mallen Nava 0 Reputation points
2022-08-17T16:34:16.347+00:00

I have the following information about cost distribution and cost allocation:

"Cost distribution. Is used to distribute cost from one cost object to one or more other cost objects by applying a relevant allocation base.
Cost allocation. Is used to allocate the balance of a cost object to other cost objects by applying an allocation base.

Cost distribution and cost allocation differ in that cost distribution always occurs at the level of the primary cost element of the original cost and no reciprocal processing."

But I don't quite understand it. Can you provide with some examples to better understand the concept?

Azure Cost Management
Azure Cost Management
A Microsoft offering that enables tracking of cloud usage and expenditures for Azure and other cloud providers.
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