Absorption Account

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Definition: Absorption Account

Absorption Account

Quick Summary of Absorption Account

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.

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Sources

What is the dictionary definition of Absorption Account?

Dictionary Definition

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.

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https://payrollheaven.com/define/absorption-account/
Modern Language Association (MLA):
Absorption Account. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 05, 2024 https://payrollheaven.com/define/absorption-account/.
Chicago Manual of Style (CMS):
Absorption Account. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/absorption-account/ (accessed: December 05, 2024).
American Psychological Association (APA):
Absorption Account. PayrollHeaven.com. Retrieved December 05, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/absorption-account/

Definition Sources

Definitions for Absorption Account 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 | 0 Views.