Legal Definitions - allocation

Definition: Allocation is when something is designated or apportioned for a specific purpose. It can also refer to the crediting of a receipt or the charging of a disbursement to an account.

Example: The company's budget committee made an allocation of funds for the new marketing campaign.

Explanation: In this example, the budget committee designated a specific amount of money for the marketing campaign. This is an allocation because the funds were apportioned for a specific purpose.

Example: The accountant made an allocation of expenses to the appropriate accounts.

Explanation: In this example, the accountant charged the expenses to the appropriate accounts. This is an allocation because the expenses were designated to specific accounts.