Glossary
Cost allocation
Cost allocation is the method of attributing a fleet's costs (fuel, salary, insurance, depreciation, maintenance) to individual trucks, customers, projects or sites, by km, hour, trip or a fixed rule, so true profit can be computed at each level.
Cost allocation is how a fleet’s costs are attributed to the things that earn revenue: individual trucks, customers, projects and sites. The common bases are by km, by hour, by trip, or a fixed monthly rule, chosen to match how each cost actually behaves.
Good allocation is what turns a single fleet-wide P&L into a per-truck and per-customer P&L. Without it, a loss-making route hides inside a profitable total and never gets fixed.
Fleetric lets you set allocation rules per cost type and recomputes profit per vehicle, customer, project and site automatically. See how it works.
See also