cost-based
UK[ˈkɒst beɪst]US[ˈkɔːst beɪst]
adj
Determined by or calculated according to cost.
adj
(Of a pricing or budgeting method) using cost as the primary factor.
Morpheme Breakdown
cost
based
cost
expense
based
founded on
Etymology
The term 'cost-based' is a modern English compound adjective, a logical fusion of two established concepts. The first element, 'cost', has a financial history rooted in the Latin idea of something having a fixed standing or value. The second element, 'based', derives from the architectural and foundational concept of a base or support. When combined, they create a transparent descriptor where the foundational principle ('based') for a decision, price, or system is explicitly the incurred or calculated expense ('cost'). This construction follows a common English pattern for forming precise technical and business terminology, directly linking the operational logic to its core determining factor.
Analysis
Structure: cost (expense) + based (founded on)
- cost: From Latin 'constare' (to stand at, to cost), via Old French 'coster'. In this compound, it functions as a noun root meaning the price or expenditure required for something.
- based: From the past participle of the verb 'base', which originates from Greek 'basis' (a step, pedestal) via Latin 'basis'. In this compound, it functions as an adjective-forming suffix meaning founded upon, derived from, or reliant on.
Examples
The company uses a cost-based pricing model to ensure all expenses are covered.
Budget allocations for the project were strictly cost-based.
Their analysis shifted from a value-based approach to a more conservative, cost-based strategy.