Cost Allocation: Best Practices & Business Cases

I’m exploring best practices for cost allocation across different branches or locations within a multi-location company. I’m interested in understanding how to fairly allocate both fixed and variable costs, especially when different locations may have varying levels of revenue, overhead, or operational efficiency.

What cost allocation methods do you typically use and why? How do you make sure the allocation is fair and easy to understand, especially when some branches are bigger, have different jobs, or make more or less money?
Have you come across any financial models or business cases that show how to do this really well?