ADMINISTRATION COST Meaning and
Definition
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Administration cost refers to the expenses incurred by an organization to manage and administer its operations effectively. It includes various overhead expenditures related to the general management and support functions necessary to carry out the core activities of the organization.
In the business context, administration costs encompass a wide range of expenses such as salaries and wages of administrative personnel, office rent, utilities, office supplies, communication costs, and insurance premiums. These expenses are essential for maintaining a functional administrative infrastructure that supports the overall operations of the organization.
Additionally, administration costs may also include expenses related to legal and professional services, finance and accounting, human resources, IT systems, and other administrative support functions. The efficient management of administration costs is crucial for organizations as it directly affects their profitability and overall financial stability.
Non-profit organizations and government agencies also incur administration costs, which play a vital role in facilitating their organizational activities. These costs typically involve maintaining administrative staff, managing facilities, organizing events, and complying with applicable regulations and policies.
Effective cost control and monitoring of administration costs are necessary for organizations to optimize their resources, maintain financial sustainability, and achieve their operational objectives. This can be achieved through streamlined processes, automation, outsourcing, and regular evaluation of administrative functions and their associated costs.
Common Misspellings for ADMINISTRATION COST
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Etymology of ADMINISTRATION COST
The word "administration" comes from the Latin word "administratio", which means "management" or "direction". It is derived from the verb "administrare", which combines "ad", meaning "to" or "toward", and "ministrare", meaning "to serve" or "to manage".
The word "cost" comes from the Old French word "coste", which means "expense" or "outlay". It can be traced back to the Latin word "constare", meaning "to stand together" or "to be fixed".
Therefore, when combined, "administration cost" refers to the expense or expenditure related to the management, direction, or functioning of an organization, company, or system.
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