Incremental cost-allocation method

Incremental cost-allocation method is method that ranks the individual users of a cost object in the order of users most responsible for the common cost and then uses this ranking to allocate cost among those users.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Incremental cost-allocation method. Method that ranks the individual users of a cost object in the order of users most responsible for the common cost and then uses this ranking to allocate cost among those users.