Define: Absorbed Overhead

UK Accounting Glossary

Definition: Absorbed Overhead


Quick Summary of Absorbed Overhead




What is the dictionary definition of Absorbed Overhead?

Dictionary Definition


The amount of the overhead of an organisation charged to, or borne by, the production of that organisation for the accounting period under consideration when the technique of absorption costing is used. The absorbed overhead is calculated by multiplying the actual production for the period by the absorption rate.


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Absorbed Overhead. PayrollHeaven.com. Retrieved July 16, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/absorbed-overhead/

Definition Sources


Definitions for Absorbed Overhead are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 27th January 2019.