Words / D / Business

denominator

noun/dɪˈnɒmɪneɪtə/

C2CEFR level
75/100Rarity: rare
TechnicalRegister

The chosen level of activity over which fixed overhead is spread to derive a unit rate.

Choosing budgeted rather than practical capacity as the denominator quietly padded every unit's absorbed cost.

Topic: Accounting in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Accounting