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 ?
In this section, we will define the three major constructs in our study, responsive strategy (RS), absorptive capacity (AC), and firm performance (FP).
Absorptive capacity is influential in determining organizational outcomes given that it allows for renewal of the firm's knowledge base and creation of other firm-level competencies (Floyd and Lane, 2000).
Much work to date on cross-border knowledge transfer has focused on the recipients of such transfers, more specifically on the recipients' absorptive capacity (Mahnke et al.
While previous studies agree on the importance of absorptive capacity and motivation on knowledge transfer effectiveness, there are also studies that prove otherwise.
Another hypothesis is the relationship between absorptive capability and transformative capability.
In many studies research, absorptive capacity has been measured through quantitative variables such as R&D spending/intensity (Cohen & Levinthal, 1990, Jantunen, 2005; Sofka, 2008; Stock, Greise, & Fischer, 2001; Tsai, 2001; Vega-Juado, Gutierrez-Garcia & Lucio, 2008; Zahra & Hayton, 2008), existence of a formal research and development department (VegaJurado, et al.
Szulanski (1996) points to the lack of absorptive capacity, causal ambiguity, and relationship difficulties.
The monolayer absorber "ekomolitan" t=20 mm has excellent absorptive properties at higher frequency range f > 3000 Hz.
The remaining two conditions, parties' motivation to do the exchange and parties' combination capabilities or absorptive capacity to fulfill the exchange (Gupta & Govindrajan, 2000a; Nahapiet & Ghoshal, 1997) are hypothesized to moderate the relationship between strong intrafirm networks and intellectual capital and are discussed in detail below.
The new facility's green features include ecofloor, a product made from recycled rubber materials; an energy-efficient, calculite compact fluorescent light with low energy consumption; cotton insulation; and spre-fix, a type of spray-on sound absorptive insulation that creates better indoor acoustic quality and thermal control.
Nothing should be done to jeopardise the absorptive capacity of our uplands.