absorbed overhead

Show Summary Details

Quick Reference

The amount of the overhead of an organization charged to, or borne by, the production of that organization for the accounting period under consideration when the technique of absorption costing is used. The absorbed overhead is obtained by multiplying the actual production for the period by the absorption rate.

Subjects: Accounting.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.