1. Accounting: When related accounts are absorbed into each other. Called an absorption account. 2. Economics: Total amount spent by a country on goods and services. Account deficits or surplus occurs when the GDP goes above or below the absorption level. 3. Management: A overhaul of a companies operations and structure. 4. Materials: This occurs when a fluid is absorbed by another material. Refer to absorption. 5. Securities: This occurs when an underwriter sells their securities. This is also
1. In the process of creating a financial statement a ledger account is absorbed into another. 2. The account where overhead is listed against the volume of production.
The pricing practice where all factors of cost are reported to aid in the absorption rate. This guarantees all costs are recovered. It is also called full absorption costing, direct costing, and marginal costing.