UK Accounting Glossary
1. Ledger account absorbed into other accounts in the preparation of a financial statement. 2. Account that shows the amount of overhead borne by (charged against) the volume of production.
An account opened when a system of double-entry cost accounting is in operation to show the amount of overhead that has been absorbed by the production.
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.
Definitions for Absorption Account are sourced/syndicated and enhanced from:
This glossary post was last updated: 27th January 2019.