common cost: meaning, definition, pronunciation and examples
LowFormal, Technical
Quick answer
What does “common cost” mean?
A cost incurred for the benefit of more than one department, project, or product within an organization, which must therefore be allocated or shared.
Audio
Pronunciation
Definition
Meaning and Definition
A cost incurred for the benefit of more than one department, project, or product within an organization, which must therefore be allocated or shared.
An expense that is not directly attributable to a single, specific output or activity, but rather supports multiple operations collectively.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning or usage. The term is international business/accounting jargon.
Connotations
Neutral technical term in both varieties.
Frequency
Equally low-frequency in both British and American professional contexts.
Grammar
How to Use “common cost” in a Sentence
Allocate the common cost [among/to the departments]The common cost [of administration/for utilities] was apportioned.Vocabulary
Collocations
Usage
Meaning in Context
Business
Used in managerial accounting to discuss cost allocation for budgeting and pricing.
Academic
Found in economics, business studies, and accounting textbooks and papers.
Everyday
Virtually never used in casual conversation.
Technical
A standard term in cost accounting and financial management.
Vocabulary
Synonyms of “common cost”
Strong
Neutral
Weak
Vocabulary
Antonyms of “common cost”
Watch out
Common Mistakes When Using “common cost”
- Using 'common cost' to mean 'frequent expense' or 'typical price'.
- Confusing it with 'average cost' (средняя стоимость).
FAQ
Frequently Asked Questions
Yes, 'common cost' is a type of overhead. All common costs are overheads, but not all overheads are common costs. Common costs specifically require allocation among multiple cost objects.
No, 'common cost' is a compound noun. You cannot say 'a common-cost expense'. Instead, use it attributively as a noun modifier: 'common cost allocation'.
A direct cost or a traceable cost, which can be specifically and easily linked to a single product, project, or department.
In American English, it is pronounced /ˈkɑː.mən kɔːst/, with the first vowel in 'common' like the 'a' in 'father' and the 'o' in 'cost' like the 'aw' in 'law'.
A cost incurred for the benefit of more than one department, project, or product within an organization, which must therefore be allocated or shared.
Common cost is usually formal, technical in register.
Phrases
Idioms & Phrases
- “[No common idioms for this technical term]”
Learning
Memory Aids
Mnemonic
Think of a COMMON room in a flat: the rent and utilities for that room are a COMMON COST shared by all flatmates.
Conceptual Metaphor
COSTS ARE RESOURCES TO BE DIVIDED. A common cost is a pie (resource) that must be sliced and shared.
Practice
Quiz
In which context is the term 'common cost' most appropriately used?