How should we allocate shared costs across projects?
Inconsistent cost allocationAgree a defensible allocation basis with finance that matches the purpose of the analysis. Apply it consistently and disclose assumptions rather than moving costs to improve one project's appearance.
What to do now
- Identify the shared cost pool
- Choose an appropriate allocation driver
- Document and apply the rule consistently
- Review material changes with finance
When to escalate
Escalate when
The allocation materially distorts management or financial reporting.
Who decides
The budget owner and authorized finance representative
Example
Shared specialist support is allocated using an agreed effort measure rather than arbitrary percentages.
Mistake to avoid
Shifting costs to the project with the largest remaining budget.
Prevent a repeat
Review remaining cost and commitments, not only money already spent; reconcile with the authorized finance source.
Related cases
- The team forgot recurring software and support costs. How do we correct the business case?Missing lifecycle costs
- Our committed costs are missing from reports. Why does that matter?Incomplete obligation reporting
- AI usage costs are rising faster than adoption. What should we examine?Uncontrolled inference consumption
- Requirements are scattered across emails and meetings. How do we regain control?Fragmented requirements record