absorption rate


absorption rate
absorption rate absorption rate rate1

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absorption rate UK US noun [C]
(also overhead absorption rate, also recovery rate) ACCOUNTING the percentage of fixed costs (= costs that are the same each month) that a company pays for with the profits from particular products and services: »

The car dealership covers most of its fixed operating costs with gross profits from service and parts operations, but this 90% absorption rate is unusual in the industry.

(also real-estate absorption rate) PROPERTY the rate at which homes in a particular area are being sold: »

An absorption rate of 6 indicates a balanced market, while the current figure for the area of 9.2 shows that it is a buyer's market.


Financial and business terms. 2012.

Look at other dictionaries:

  • absorption rate — overhead absorption rate; = recovery rate The rate or rates calculated in an absorption costing system in advance of an accounting period for the purpose of charging the overheads to the production of that period. Absorption rates are calculated… …   Accounting dictionary

  • absorption rate — overhead absorption rate; recovery rate The rate or rates calculated in an absorption costing system in advance of an accounting period for the purpose of charging the overheads to the production of that period. Absorption rates are calculated… …   Big dictionary of business and management

  • Absorption Rate — The rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the total number of available homes by the average number of sales per month. The figure shows how many months it …   Investment dictionary

  • absorption rate — Fin see overhead absorption rate …   The ultimate business dictionary

  • absorption rate — /əb zɔ:pʃən reɪt/ noun a rate at which overhead costs are absorbed into each unit of production …   Dictionary of banking and finance

  • Absorption rate — Скорость поглощения, скорость впитывания …   Краткий толковый словарь по полиграфии

  • Specific absorption rate — (SAR) is a measure of the rate at which radio frequency (RF) energy is absorbed by the body when exposed to radio frequency electromagnetic field. It is defined as the power absorbed per mass of tissue and has units of Watts per kilogram [cite… …   Wikipedia

  • overhead absorption rate — UK US noun [C] ► ACCOUNTING ABSORPTION RATE(Cf. ↑absorption rate) …   Financial and business terms

  • fixed overhead absorption rate — The budgeted fixed overheads divided by the budgeted standard hours, budgeted production in units, or other budgeted production measure. See: absorption rate …   Accounting dictionary

  • overhead absorption rate — See: absorption rate …   Accounting dictionary


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