Cost allocation is an integral part of Technology Business Management (TBM). TBM is a category of software solutions designed to help IT organizations manage and communicate the cost, quality and value of IT Services. TBM brings the best practices of financial and performance management evolved for sales and manufacturing and applies those to the complex environment of IT. This whitepaper focuses on the prevalent cost allocation methodologies in practice, and offers guidance on which one is the best fit in any given context.