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]