Absorbed Overhead

Business, Legal & Accounting Glossary

Definition: Absorbed Overhead

Quick Summary of Absorbed Overhead

Absorbed overhead is manufacturing overhead that has been applied to products or other cost objects. Overhead is usually applied based on a predetermined overhead allocation rate.

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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Absorbed Overhead. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. October 21, 2021 https://payrollheaven.com/define/absorbed-overhead/.
Chicago Manual of Style (CMS):
Absorbed Overhead. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/absorbed-overhead/ (accessed: October 21, 2021).
American Psychological Association (APA):
Absorbed Overhead. PayrollHeaven.com. Retrieved October 21, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/absorbed-overhead/

Definition Sources

Definitions for Absorbed Overhead are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 18th July, 2019 | 10 Views.