Shared costs refer to expenses that are divided among multiple parties, making it more affordable for each individual or group involved. This concept is commonly used in various situations, such as business partnerships, joint ventures, or household expenses. By sharing costs, participants can reduce their financial burden while still benefiting from the service or product. For example, in a roommate situation, shared costs might include rent, utilities, and groceries. Each person contributes a portion of these expenses, allowing them to live together more economically. This approach fosters collaboration and can lead to better financial management for all parties involved.