absorption rate


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Absorption Rate

The rate at which vacant business or residential space in an area is sold or rented over a given period of time. The absorption rate is expressed in square feet sold/leased as a percentage of the total available. Alternatively, one may express it as units (or homes) sold as a percentage of the total.

absorption rate

or

cost rate

or

recovery rate

a means of charging OVERHEADS to products. By relating budgeted overhead costs to budgeted output, it is possible to calculate an overhead absorption rate per unit of product to add to the standard DIRECT COST (direct materials cost and direct labour cost) of a product in order to determine its production cost. Alternatively production overheads can be charged as a percentage on the direct labour cost of a product; or a percentage on the direct materials cost of the product; or on the basis of the direct labour hours to make the product (at a rate per direct labour hour); or on the basis of the machine hours needed to make the product (at a rate per machine hour).

Once the production cost of a product has been determined by adding production overheads, then a further addition must be made to cover selling, distribution and administration overheads. These can be allowed for by means of other cost rates, such as by adding an appropriate percentage to the production cost of the product. The addition of overhead cost rates to the standard direct cost of products serves to establish their total cost, and facilitates their ABSORPTION through selling prices. See BUDGET, STANDARD COST.

absorption rate

The rate at which vacant space is leased or purchased over a specified period of time. The absorption rate for commercial property is usually expressed in square feet per year; residential property is quoted in units (homes) per year.

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References in periodicals archive ?
Bulgaria ranks 24th with an EU funds absorption rate of 76.
New listings remain steady compared to last year at this time, but the absorption rate has increased, which is a good indicator," said Tom Hosack, current president of the West Penn Multi-List, Inc.
Upper Manhattan is currently enduring a lower absorption rate --the actual speed of the sale--than other sections of the borough.
Undersecretary to the President Constantinos Petrides said from his part that efforts under way focus at increasing the absorption rate of EU funds.
The company has expertise in specific absorption rate (SAR), radio frequency (RF), electromagnetic compatibility (EMC) and electrical safety testing, with laboratory facilities in Yokohama and Nagano.
The market absorption rate of new rental apartments again fell during the third quarter, while the rental vacancy rate showed a slight decline, noted the HUD report, U.
Substituting 5% toasted soy flakes for wheat flour did not change the water absorption rate compared with the control.
Patent 7,160,958 (January 9, 2007), "Method of Increasing the Absorption Rate of Peroxides Into Polymer Particles," Peter R.
Even the puppy looks askance at their absorption rate.
The aluminum oxide film on the surface of molten aluminum provides some inhibitor to gas, and turbulence during handling and pouring will break that oxide skin and increase the hydrogen absorption rate.
While the impact of this trend on the rental apartment market is difficult to fully quantify, it is clear that the removal of formerly competitive apartments from the market has the arithmetic effect of muting the market's reported net absorption rate, said the report, written by Reis CEO Lloyd Linford.