Method and system for allocating costs within an enterprise which has cost centres and associated measured objects (MO's). The method involves the following steps: (1) setting a first MO as a base MO and quantifying its volume based on a cost driver; (2) identifying further MO's which contribute to the base MO's functioning; (3) assigning a value of one to the direct-cost of the base MO; (4) assigning a value of zero to the direct-costs of each of said further MO's; (5) defining simultaneous linear equations as follows: a first linear equation being defined so as to equate the base MO volume to the direct-cost of the base MO, set to one, plus the volumes of said further MO's; and an additional linear equation for each of said further MO's, each of these additional linear equations being defined so as to equate the volume of each respective MO to its zeroed direct-cost plus the volumes of the further MO' s contributing to its functioning; and (6) solving said equations thereby to generate iterative rates for t
