cost pool

USAGE SUMMARY

"cost pool" is a correct and usable phrase in written English.
It is commonly used in business and finance contexts to refer to a set of costs that are grouped together for accounting and cost allocation purposes. Example: The company's finance department is responsible for managing the cost pool and allocating expenses to different departments based on their usage.

✓ Grammatically correct

Academia

Science

News & Media

Human-verified examples from authoritative sources

Exact Expressions

27 human-written examples

An indirect cost rate must be determined for each separate indirect cost pool developed.

Cornell University

An indirect cost rate should be developed for each separate indirect cost pool developed.

Cornell University

The modified total direct costs amount included in the indirect (F&A) cost pool must be separately identified.

Cornell University

6. Indirect cost pool is the accumulated costs that jointly benefit two or more programs or other cost objectives.

Cornell University

The total amount of salaries and wages included in the indirect (F&A) cost pool must be separately identified.

Cornell University

The default allocation bases by cost pool are described in section B.3.c of this Appendix.

Cornell University

Human-verified similar examples from authoritative sources

Similar Expressions

33 human-written examples

The indirect cost pools must be classified within two broad categories: "Facilities" and "Administration," as described paragraph (a) of § 200.414 Indirect (F&) costs.

Cornell University

For this purpose, an indirect (F&A) cost rate should be determined for each of the separate indirect (F&A) cost pools developed pursuant to subsection 1.

Cornell University

Institutions should not change their accounting or cost allocation methods if the effect is to change the charging of a particular type of cost from F&A to direct, or to reclassify costs, or increase allocations from the administrative pools identified in paragraph B.1 of this Appendix to the other F&A cost pools or fringe benefits.

Cornell University

The allowance could be either 24% of modified total direct costs or a percentage equal to 95% of the most recently negotiated fixed or predetermined rate for the cost pools included under "Administration" as defined in Section B.1, whichever is less.

Cornell University

Accordingly, each allocation method used to identify and allocate the indirect (F&A) cost pools, as described in Sections A.2, Criteria for distribution, and B.2 through B.9, must contain the full amount of the institution's modified total costs or other appropriate units of measurement used to make the computations.

Cornell University

Expert writing Tips

Best practice

When discussing financial management or accounting, clearly define which costs are included in your "cost pool" to avoid ambiguity. For example, specify whether it includes direct labor, materials, or overhead.

Common error

Avoid the mistake of assuming a "cost pool" is universally defined. Always clarify the specific types of costs included, as this can vary significantly across different organizations and industries.

Linguistic Context

The phrase "cost pool" functions as a noun phrase referring to a grouping of costs for accounting purposes. As Ludwig AI confirms, it’s a standard term in finance and business, used to describe accumulated expenses that will be allocated to various cost objectives.

Expression frequency: Very common

Frequent in

Academia

33%

Science

26%

News & Media

22%

Less common in

Formal & Business

19%

Ludwig's WRAP-UP

In summary, "cost pool" is a noun phrase that describes a grouping of costs for accounting and allocation purposes. Ludwig AI confirms its validity and common usage. It's most frequently found in academic, scientific, and formal business contexts, indicating a professional register. To use it effectively, always define the specific costs included in your pool to avoid ambiguity. Common mistakes include assuming a universal definition. Alternatives include "expense grouping" or "indirect cost allocation", depending on the desired emphasis. This guide, informed by real-world examples and linguistic analysis, provides a comprehensive understanding of "cost pool" and its applications.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

expense grouping

Focuses on the act of grouping rather than the collection itself.

indirect cost allocation

Specifies the allocation aspect of indirect costs, differing from a general collection of costs.

overhead cost center

Highlights the 'overhead' aspect and implies a center of activity, shifting the focus slightly.

pooled expenses

Emphasizes the action of pooling expenses, offering a more dynamic view.

combined cost base

Highlights the combined nature of the costs and their function as a base for further calculations.

aggregate cost group

Similar to "cost pool" but uses "aggregate" and "group" for a slightly varied emphasis.

accrued cost reserve

Suggests a reserve fund created by accumulating costs, which has a different connotation.

shared cost allocation

Highlights the shared aspect of the costs and the subsequent allocation process.

collective expense account

Specifies that the costs are tracked in an account and emphasizes the collective aspect.

joint cost cluster

Uses "cluster" to suggest a grouping of related costs and "joint" to emphasize shared benefits.

FAQs

What is a "cost pool" in project management?

In project management, a "cost pool" refers to the accumulation of various project-related costs, like labor, materials, and overhead. These costs are then allocated to different project activities or phases. Understanding how these costs are grouped allows for accurate budgeting and project tracking.

How do you allocate costs from a "cost pool"?

Costs from a "cost pool" are allocated using a predetermined allocation base. This base could be direct labor hours, machine hours, or square footage. The total cost in the pool is divided by the total allocation base to determine a cost allocation rate, which is then applied to each cost object.

What are some examples of items included in a "cost pool"?

Common items in a "cost pool" include rent, utilities, depreciation, and administrative salaries. These are typically indirect costs that support multiple projects or departments and are not directly traceable to a single activity.

What's the difference between a "cost pool" and "cost center"?

A "cost pool" is a collection of costs, while a "cost center" is a department or unit within an organization where costs are accumulated. The costs from various cost pools may be allocated to different cost centers for management and accounting purposes.