Cost Allocation

Distribute costs according to the use of resources. Telecom expenses are among the top costs of any company, which makes it critical to identify costs that should be charged back to employees, projects, clients or cost centers.

The efficient allocation of telecom costs occurs in several stages:

• Distinguish between costs related to the business and employees' personal calls.  Our system separates this first major category so your company can decide how to allocate or recover the cost of personal calls.

• Establish a cost allocation structure.  Although it is usually the same as the accounting structure for each cost center, many of our clients choose different structures depending on their needs.

• Decide if the cost of a call should be allocated according to the employee making the call or by the telephony resources used, or both.

• Spread fixed costs such as charges for circuits, PBXs, telephones, between the different constituents who use these resources.

• Establish mechanisms for cost recovery.

• A good cost allocation policy not only allows greater control of costs but systematically reduces waste.