Allocability – Definition & Meaning

Allocability is a term that refers to the ability to allocate or assign costs to a particular project or activity. It is an important concept in accounting and finance as it helps in determining the actual cost of a project or activity. In this article, we will discuss the definition, origin, meaning, associations, synonyms, antonyms, and example sentences of allocability.

Definitions

Allocability can be defined as the ability to assign costs to a particular project or activity. It is the process of determining which costs are directly related to a particular project or activity and which costs are indirect. It is an important concept in accounting and finance as it helps in determining the actual cost of a project or activity.

Origin

The origin of allocability can be traced back to the field of accounting and finance. It is a term that has been used for many years to describe the process of assigning costs to a particular project or activity.

Meaning in different dictionaries

According to the Merriam-Webster dictionary, allocability is defined as the quality or state of being allocable. The Cambridge dictionary defines it as the ability to be allocated or assigned to a particular project or activity.

Associations

Allocability is closely associated with cost accounting and managerial accounting. It is also associated with project management, as it helps in determining the actual cost of a project.

Synonyms

Some synonyms of allocability include assignability, apportionment, and distribution.

Antonyms

Some antonyms of allocability include unassignable, unapportioned, and undistributed.

The same root words

Some root words that are related to allocability include allocate, allocation, and allocator.

Example Sentences

1. The allocability of costs is an important concept in cost accounting.
2. The project manager was able to determine the allocability of the costs for the project.
3. The accountant was able to allocate the costs to the appropriate project using allocability.
4. The company was able to improve its allocability by implementing a new cost accounting system.