Cost-bearing
Adjective describing a person, entity, or system that assumes the expenses associated with a particular transaction, project, or endeavor. This term is commonly used in finance and business contexts to refer to the financial responsibility taken on by an individual or organization. A cost-bearing individual or organization is typically expected to manage costs efficiently while meeting obligations and fulfilling contractual duties.
Cost-bearing meaning with examples
- In our company, the project manager is not just responsible for overseeing the team, but also for being cost-bearing. They must ensure that the project stays within the budget allocated and make adjustments to operations to avoid overspending, which could impact profitability.
- During the negotiations between the partners, it became clear that they needed to define who would be cost-bearing for unexpected expenses. Without clarity, there could be disagreements on who should cover costs that arise outside the initial budget.
- As a startup, we must be cost-bearing in our approach to product development. This means we need to find innovative solutions to keep costs low while still delivering quality products to our customers. Our survival depends on maximizing efficiency and managing expenses.
- In a joint venture, it's crucial to establish upfront who will be cost-bearing when it comes to marketing campaigns. If one partner assumes all the financial responsibilities without formal agreement, it could lead to resentment and potential disputes in the future.
