What does allocation base mean?

allocation base meaning in Law Dictionary

Spreading sources in an organization that complies with overhead prices. Whenever sources boost or decrease therefore will overhead.

allocation base meaning in Business Dictionary

The distribution of sources within something or operating department of an organization that correlates along with its base-level of expense costs. When resources including guy hours, running room, or energy consumption are increased or reduced in an adequately allocated base, its overhead expenses will correspond proportionately.