Absorb

Breadcrumb Abstract Shape
Breadcrumb Abstract Shape

Absorb

In accounting, absorb means to allocate or charge a cost to a product, department, or job.

It is commonly used in cost accounting.

For example:

Factory overheads are absorbed into the cost of products.

This process is called absorption costing.

In simple terms, to absorb means to include a share of expenses as part of the total cost of something.