Redistributed cost definition
/What is a Redistributed Cost?
A redistributed cost is a cost that has been allocated from one department to another. This situation arises when the costs of a service department (such as the IT department or the janitorial department) are charged out to other departments within a business that utilize their services. It is useful to understand these costs, since you can compare them to what it would cost to instead outsource the associated services from an outside provider. If the redistributed cost is substantially higher than the cost to outsource the same services, it may make sense to switch to the outside supplier.