Define: Absorption Account

UK 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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Full Definition of Absorption Account



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Absorption Account FAQ's



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Absorption Account. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 20, 2019 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: November 20, 2019).
American Psychological Association (APA):
Absorption Account. PayrollHeaven.com. Retrieved November 20, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/absorption-account/

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