absorption rate

(redirected from Absorption Rates)
Also found in: Encyclopedia.

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.

Mentioned in ?
References in periodicals archive ?
According to the report, the bottom performers in absorption rates were Wajir, Nakuru, Kilifi, Lamu, Tana River, Siaya, Nyandarua, Kajiado, Baringo, Samburu and Turkana counties.Kakamega spent the highest amount on development projects at S billion, followed by Mandera and Nairobi counties at Sh2.8 billion and Sh2.3 billion respectively.
Leasing activity in these submarkets continues to be strong which is reflected by the healthy absorption rates across all submarkets.
Yet, a chemical found in black pepper, called piperine, can greatly bolster our curcumin absorption rates.
The probabilities for these detailed variables (funds, each FA, and absorption rate ra.) were expressed in a similar manner for both the specific variants of the allocated funds (0.4 and 0.6), starting from actual levels recorded and updated, and the absorption rates (0.2, 0.5 and 0.3), stressing the importance of the actual level reached in RO and EU, in the first budget period, finally also including a variant that is slightly upward relative to the first (0.3).
Water absorption rate: The water absorption rates of bedding materials are shown in Table 3.
Our current absorption rate is just 4.5 months when historically a rate of 6-9 months indicates a balanced market," said Hall F.
Undersecretary to the President Constantinos Petrides said from his part that efforts under way focus at increasing the absorption rate of EU funds.
One of the reasons for the low absorption rates is obviously the crisis.
As shown in Figure 1(d), the fabricated MA exhibits three perfect experimental absorption peaks at 4.88 GHz, 7.88 GHz, and 11.32 GHz with the corresponding absorption rates of 99.9%, 97.9%, and 97.8%, which shows an excellent agreement with our simulated results.
"These are the lowest absorption rates in the Union of 27 countries," the French authors write.
Well, if national and local absorption rates are any indicator, the writing on the wall is crystal clear.
Q-Cell has a unique, tri-lipid gel-based formulation that has been shown to increase absorption rates by up to 10-fold in comparison to dry powder supplements.