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 ?
The absorptive capacity is the organizational capacity to recognize new information or knowledge, assimilate, transform and use them to commercial ends (Cohen & Levinthal, 1990).
Nevertheless, it has been pointed out in previous studies that many Firms ignore the importance of social capital and absorptive capacity in achieving technology innovation performance [11, 12].
The most important characteristics of the absorptive silencer is that the pressure should be as low as possible.
The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets.
Absorptive (principal) cells exhibit many microvilli in their free face (Figure 3A) and rest on a thick basal lamina, where cytoplasmic projections are observed (Figure 3B).
Sun and Anderson (2010) examine the nature of relationships between absorptive capacity and organizational learning and they argue that absorptive capacity and organizational learning concepts share conceptual affinity.
This may reflect lessons learnt from earlier failed acquisitions (20) as well as growing technological and innovative capabilities among Chinese firms (21) that is helping to increase their absorptive capacity in respect of technology and R&D capabilities that are the main attraction of European acquisitions.
Hypothesis 1 suggests ordinary capabilities mediate the relationship between absorptive capacity and firm performance.
Absorptive capacity is defined as the degree to which a firm acquires, assimilates, transforms, and applies information to improve performance (Zahra & George, 2002).
The absorptive capacity in the region is about 10,000 hotel rooms, he added.
The articles deal with absorptive capacity as a framework to enhance diversity, job crafting, the Leadership Lab, leadership as seen in collegiate soccer, and managing the effects of social media.