Bit allocation analysis is concerned with the study of efficient combinations of quantizer-based allocations and bit consumption by a model capable of numerical application. The modus operandi of bit-allocation analysis is the use of set theory and the fundamental theorems of mathematical optimization. The most important concept in this analysis is the efficient allocation process, which represents a combination of quantizer-based allocations and bit consumption such that no bit allocation of a quantizer can be increased without decreasing another quantizer's allocation or increasing consumption. The main result of this paper allows one to characterize the concept of efficient allocation process by profit maximization with respect to any allocation-consumption combination among competing quantizers. In bit allocation analysis, the system makes a choice from the set of efficient allocations at any given time by using the appropriate strategy for computing the profit vector. It may allow attending to different parameters of interest at different bit rates within the same spatial locations. It is a typical linear programming problem, for which computational methods are well known and widely used in practice. The comparative performance of the 3-D set partitioning in hierarchical trees with motion-compensated temporal filtering and the proposed coder (without motion filtering) using bit allocation analysis is here evaluated on a set of sequences of moving targets.