Definition of Legacy costs:
Escalating legacy costs can be a large contributing factor towards limiting a company's competitiveness because such items do not contribute to revenue, growth, or profits. However, while these costs can have a negative impact on a company's bottom line, workers’ rights advocates argue that employers have an ethical obligation to support their employees with these types of funding activities.
Legacy costs are company costs associated with health care fees and other benefits for its current employees and retired pensioners. These costs are typically ongoing and will increase the company's spending, while not adding to revenue. Pension plans are a prime example of a legacy cost.
That are associated with legacy applications or legacy systems.
How to use Legacy costs in a sentence?
- Corporations become less competitive as legacy costs increase because these expenses do not contribute anything to revenues, growth, or profits.
- Legacy costs are corporate expenses for pensions or health care programs.
- Larger and older corporations typically have the biggest burdens when it comes to legacy costs.
- Many companies are taking steps to reduce legacy costs, such as changing their employee retirement plans from defined-benefit to defined-contribution.
Meaning of Legacy costs & Legacy costs Definition