ALLOCABLE Meaning and
Definition
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Allocable is an adjective that describes something that can be allocated or distributed in a specified manner. It is derived from the term "allocate," which means to set apart or distribute resources, responsibilities, or tasks according to a particular plan or system. The concept of allocable implies that something can be apportioned or assigned to specific individuals, groups, or categories.
In business and finance, the term allocable often refers to the distribution of costs or expenses. It signifies the ability to assign or attribute an expense to a particular department, project, or cost center. For example, in cost accounting, overhead expenses may be allocated to different manufacturing departments based on predetermined factors such as labor hours or machine usage.
Allocable can also apply to legal or contractual matters. In these contexts, it describes the ability to assign or attribute liability, benefits, or rights to different parties involved. For instance, in a contract, certain risks or obligations may be allocable to one party while others are allocable to the other.
Overall, the term allocable denotes the capability or potential for something to be distributed, assigned, or apportioned in a manner that is consistent with predetermined criteria or parameters.
Common Misspellings for ALLOCABLE
Etymology of ALLOCABLE
The word "allocable" is derived from the verb "allocate". The verb "allocate" is derived from the Latin word "allocatus", which is the past participle form of the verb "allocare". "Allocare" is formed by combining the prefix "ad-" meaning "to" or "towards" and the verb "locare" meaning "to place". Therefore, "allocable" can be understood as something that can be allocated or assigned to a specific place or purpose.
Similar spelling words for ALLOCABLE
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