absorption rate Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “absorption rate” in the English Dictionary

"absorption rate" in Business English

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absorption ratenoun [C]

uk   us  
(also overhead absorption rate, also recovery rate) ACCOUNTING the ​percentage of fixedcosts (= ​costs that are the same each month) that a ​companypays for with the ​profits from particular ​products and ​services: The ​cardealershipcovers most of its ​fixedoperatingcosts with ​grossprofits from ​service and ​partsoperations, but this 90% ​absorptionrate is unusual in the ​industry.
(also real-estate absorption rate) PROPERTY the ​rate at which homes in a particular ​area are being ​sold: An ​absorptionrate of 6 ​indicates a ​balancedmarket, while the ​currentfigure for the ​area of 9.2 ​shows that it is a buyer's ​market.
(Definition of absorption rate from the Cambridge Business English Dictionary © Cambridge University Press)
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“absorption rate” in Business English

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