the act of allocating; apportionment. 2. the state of being allocated. 3. the share or portion allocated. 4. Accounting. a system of dividing expenses and incomes among the various branches, departments, etc., of a business. Origin of allocation.
Licensing Overview: Term vs. Perpetual License. A perpetual license allows the user to continue to use the software for as long as they continues to comply with the terms of the license agreement. Term license pricing is aimed at companies with small IT budgets, but whose business requires a robust software solution.
Even here, though, it's not that simple. Say an accounting firm purchases a perpetual license for a piece of tax preparation software that's really only useful for one tax prep season, so it doesn't really have a long service life, so that's probably not going to be capitalized.