Definition, Meaning & Synonyms
ancillary costs
noun
/ˌænsɪˈlɛri kɑsts/
Definition
Ancillary costs refer to the additional expenses that are incurred during a project or a transaction, which are not directly tied to the primary cost of the main service or product being acquired.
Examples
- The ancillary costs of buying a new car include insurance and taxes.
- When budgeting for a new project, it’s important to account for ancillary costs, like training and consulting services.
- Companies often overlook ancillary costs, leading to unexpected financial strain.
Meaning
These costs may include various supporting expenses that assist the main function but are not part of the general budget, such as maintenance, support services, or supplementary materials.
Synonyms
- Additional costs
- Supporting costs
- Indirect costs
- Supplementary costs
