absorption

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Absorption

1. The total demand for all goods and services in an economy. One calculates the absorption by adding the value of all goods and services produced and consumed locally to that of all imports.

2. A French term for acquisition.

absorption

the sharing of indirect costs or OVERHEADS to units of product by means of COST RATES. Provided that actual overheads do not exceed BUDGET and that actual output is the same as budgeted output, then the overhead cost rate should allow total product cost to be determined, and a selling price set which will recover the overhead costs involved in producing and selling the product. See STANDARD COST, OVERHEAD COST VARIANCE.
References in periodicals archive ?
3]) systems is becoming more important especially with the introduction of efficient Generator-Absorber Heat Exchange (GAX) absorption units.
Carbon absorption units, for example, have proven to be expensive, inefficient, labor intensive and generally unsuccessful.
based Arctic Solar Engineering, LLC, a privately held supplier and integrator of solar thermal systems and absorption units.