- Absorbed Cost
- The indirect costs that are associated with manufacturing. Absorbed costs include such expenses as insurance, or property taxes for the building in which the manufacturing process occurs. When the total manufacturing costs are determined, the implicit absorbed costs are not considered, but will be included in a separate account.
On a company’s income statement, the cost of goods sold entry does not reflect the absorbed costs; only the actual costs of the material is included. Incurring insurance and property tax expenses is a required part of the manufacturing process, but these absorbed costs are classified as separate expenses.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Absorbed — 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. In mergers, when an… … Investment dictionary
absorbed tax — Where the price designated in the contract is a composite price, made up of various unspecified elements of cost in which is included the tax, not as a separate item, but as an integral part thereof, the tax is generally regarded as absorbed or… … Ballentine's law dictionary
unabsorbed cost — The part of the overhead costs of a production process that are not covered by its revenue when the output falls below a specified level. Overheads are sometimes added to the direct costs of a process and divided by the output to give a unit cost … Big dictionary of business and management
Low-cost carrier — A Boeing 737 800 operated by Irish budget airline Ryanair … Wikipedia
Operating cost — Operating costs can be described as the expenses which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility. Business operating costs For a commercial enterprise, operating costs… … Wikipedia
overhead cost absorbed — overhead cost recovered The actual production for a period multiplied by the overhead absorption rate budgeted for that period … Accounting dictionary
overhead cost recovered — overhead cost absorbed … Accounting dictionary
ECONOMIC AFFAIRS — THE PRE MANDATE (LATE OTTOMAN) PERIOD Geography and Borders In September 1923 a new political entity was formally recognized by the international community. Palestine, or Ereẓ Israel as Jews have continued to refer to it for 2,000 years,… … Encyclopedia of Judaism
international relations — a branch of political science dealing with the relations between nations. [1970 75] * * * Study of the relations of states with each other and with international organizations and certain subnational entities (e.g., bureaucracies and political… … Universalium
china — /chuy neuh/, n. 1. a translucent ceramic material, biscuit fired at a high temperature, its glaze fired at a low temperature. 2. any porcelain ware. 3. plates, cups, saucers, etc., collectively. 4. figurines made of porcelain or ceramic material … Universalium