IFO4
Loading...The attribution of variable infrastructure cost to the products that consume it, distinct from cost center allocation which attributes to organisational units. Product allocation is the operative dimension for unit economics and gross margin reporting at the product level. The federation requires product allocation to be derived from a documented mapping between resources and products, with shared services allocated through a published methodology. Allocation drift is monitored monthly under UFMS-001:2.4(b). Product allocation evidence supports the unit-economic disclosures required of accredited members.
A construction of corporate cost accounting practice; the modern SaaS sense crystallised with the rise of multi-product platform economics in the 2010s.
Federation members publish product allocation methodology and reconcile monthly. Shared services allocations follow the published methodology. Allocation drift greater than five percent month-on-month is investigated and footnoted under MEV-Annex:3.2.
@misc{ifo4_glossary_product_allocation,
title = {{Product Allocation}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{product-allocation}}},
year = {2026},
url = {https://ifo4.org/glossary/product-allocation},
note = {Category: FinOps; key: ProductAllocation}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.