Cost allocation refers to the distribution of costs among consumer classes. Utility service is produced for different customer classes using the same facilities. As a result, it is difficult to indentify separate marginal costs for each customer class because a large part of the costs are common or joint.
The naming and shaming of bad borrowers apply to wilful defaulters of public sector banks, who, according to the Reserve Bank of India Guidelines, are those who do not repay deliberately despite having sufficient funds and a solid net worth. The public sector banks have even started publishing photographs of the borrowers in newspapers.