allocation

American  

[al-uh-key-shuhn] / ˌæl əˈkeɪ ʃən /

noun

1. the act of allocating; apportionment.

2. the state of being allocated.

3. the share or portion allocated.

4. Accounting. a system of dividing expenses and incomes among the various branches, departments, etc., of a business.

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allocation British  

/ ˌæləˈkeɪʃən /

noun

1. the act of allocating or the state of being allocated

2. a part that is allocated; share

3. accounting a system of dividing overhead expenses between the various departments of a business

4. social welfare (in a Social Services Department) the process of assigning referrals to individual workers, thus changing their status to cases

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Other Word Forms

• allocative adjective
• deallocation noun
• reallocation noun
• suballocation noun

Etymology

Origin of allocation

First recorded in 1525–35; from Medieval Latin allocātiōn- (stem of allocātiō ), equivalent to allocāt(us) ( see allocate) + -iōn- -ion

Explanation

If it is your job to decide how much money goes to three charities, you are in charge of the allocation of your donation. The money each charity gets is their allocation. You'll often hear this word used when talking about things like government funding. People often debate the allocation of federal funds. Should tax dollars be used for the military, or for domestic needs like education and healthcare? These decisions are made by Congress and the President, who work together to create a budget to allocate funds appropriately.

Example Sentences

A 20% to 30% bond allocation at age 40 would be reasonable for some investors, especially those with ongoing financial responsibilities, while others may hold less than 10%.

From MarketWatch • Apr. 24, 2026

An untitled Paramount crime thriller received the highest amount — $25.9 million — while DreamWorks’ untitled animated film received $24.7 million in credit allocation.

From Los Angeles Times • Apr. 23, 2026

“We would be likely to upgrade our equity allocation from 50% to 55%, getting in line with the benchmark allocation,” says Hayes.

From MarketWatch • Apr. 17, 2026

As CEO Greg Roberts pointed out on the most recent earnings call, “When Silver Eagles go on allocation and become scarce, customers tend to buy our other private mint products.”

From Barron's • Apr. 16, 2026

However, World Bank members, who came from many countries to meet in Moscow, were divided about the allocation.

From "Mountains Beyond Mountains" by Tracy Kidder and Michael French

Related Words

• allotment
• appropriation
• quota
• share