A system and method for application resource utilization metering and cost allocation in a utility computing environment. In one embodiment, the system may include a computational resource, a plurality of applications configured to utilize the computational resource, a metering utility configured to measure utilization of the computational resource by a given one of the plurality of applications, and a cost model configured to allocate a first portion of a cost of the computational resource to the given application dependent upon the measured utilization of the computational resource by the given application.

 
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