Before moving to allocation, it is better to explain what is controlling accounting related to allocation.

Controlling accounting utilizes financial accounting data to capture the performance for management. To do so, in general, Controlling Accounting splits finacial informationt by product or by product group.

On the other hand, it is necessary to have back offices like HR, Accounting and Sale representatives to run business.

Therefore it it hard for accounting team to look for the best way to allocate these necessary cost to prodcut or product group.