Absorption Account

Business, Legal & Accounting Glossary

Definition: 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.



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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Absorption Account. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 05, 2020 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, 2020).
American Psychological Association (APA):
Absorption Account. PayrollHeaven.com. Retrieved December 05, 2020, 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 | 73 Views.