The traditional allocation method is essentially a part of the equity method.

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The traditional allocation method and the equity method are distinct approaches used in accounting and finance. The traditional allocation method typically refers to the allocation of costs or resources based on predetermined criteria or bases, often used in cost accounting or budgeting. The equity method, on the other hand, is a method of accounting for investments in which the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profits or losses and dividends received.

The Traditional Allocation Method Is Essentially a Part of the Equity