What is ‘Absorbed’
1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices.
Explaining ‘Absorbed’
1. For example, if a peanut butter company’s cost for peanuts increases from 50 cents per jar to $1.00 per jar but the company keeps the cost of one jar at $3 instead of raising it to $3.50, it has absorbed the increase in peanut prices.
Further Reading
- Political economics and public finance – www.sciencedirect.com [PDF]
- Pathways to randomness in the economy: emergent nonlinearity and chaos in economics and finance – www.jstor.org [PDF]
- C14-cholesterol. 1. Lymphatic transport of absorbed cholesterol-4-C14. – www.cabdirect.org [PDF]
- Decay properties for the damped wave equation with space dependent potential and absorbed semilinear term – www.tandfonline.com [PDF]
- The economics and finance of bilateral clearing agreements: Germany, 1934-8 – www.jstor.org [PDF]
- Participation of phospholipides in lymphatic transport of absorbed fatty acids. – www.cabdirect.org [PDF]
