When multiplying two matrices, we need to allocate a third one to store the result. Should this allocation be considered when calculating the memory consumption of the algorithm?
I can't imagine an argument that the space required for an algorithm is less than what is required to store the result; that should be the lower bound of the space required.
But apparently my imagination is not up to the task at hand, and neither the space for the input parameters nor the space for the output/result should be counted against the algorithm.
So (as the comments below have convinced me): no.