Words / O / Business

overabsorption

noun/ˌəʊvərəbˈsɔːpʃən/

C2CEFR level
92/100Rarity: very rare
TechnicalRegister

The excess arising when overhead applied to production exceeds the overhead actually incurred.

Running the line above budgeted capacity produced an overabsorption that flattered the period's reported margins.

Similar: over-recovery

Topic: Accounting in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Accounting