Differentiate between horizontal and vertical revenue allocation?

Horizontal revenue allocation refers to the distribution of revenue among different departments or units within an organization that are at the same level or have similar functions. This type of allocation is typically used to ensure that resources are distributed fairly and efficiently among different departments.

Vertical revenue allocation, on the other hand, refers to the distribution of revenue among different levels of an organization, such as between headquarters and regional offices or between a parent company and its subsidiaries. This type of allocation is often used to allocate resources based on the hierarchy or structure of the organization.