Which aspect of expense allocation simplifies the accounting process?

The aspect of expense allocation that simplifies the accounting process is reducing the time spent allocating expenses among departments after the expenses have been incurred. This efficiency stems from having a predefined system or automated processes in place that streamline the allocation of expenses to the respective departments in real-time, rather than waiting until after the fact. This proactive approach eliminates the need for manual allocation, reduces the risk of errors, and saves significant time during monthly close periods, which can lead to more accurate financial reporting and analysis.

The other aspects, while potentially relevant to expense management, do not contribute to simplifying the accounting process in the same manner. For example, manual entry can lead to increased errors and workload, incorporating budgeting directly focuses on cost planning rather than allocation efficiency, and applying only to local subsidiaries limits its effectiveness and relevance across broader organizational contexts. Hence, reducing the time spent on post-expense allocation is a key feature that simplifies overall accounting processes.