overhead absorption rate


overhead absorption rate

Accounting dictionary. 2014.

Look at other dictionaries:

  • overhead absorption rate — UK US noun [C] ► ACCOUNTING ABSORPTION RATE(Cf. ↑absorption rate) …   Financial and business terms

  • fixed overhead absorption rate — The budgeted fixed overheads divided by the budgeted standard hours, budgeted production in units, or other budgeted production measure. See: absorption rate …   Accounting dictionary

  • absorption rate — overhead absorption rate; = recovery rate The rate or rates calculated in an absorption costing system in advance of an accounting period for the purpose of charging the overheads to the production of that period. Absorption rates are calculated… …   Accounting dictionary

  • absorption rate — overhead absorption rate; recovery rate The rate or rates calculated in an absorption costing system in advance of an accounting period for the purpose of charging the overheads to the production of that period. Absorption rates are calculated… …   Big dictionary of business and management

  • absorption rate — ➔ rate1 * * * absorption rate UK US noun [C] ► (also overhead absorption rate, also recovery rate) ACCOUNTING the percentage of fixed costs (= costs that are the same each month) that a company pays for with the profits from particular products… …   Financial and business terms

  • absorption rate — /əb zɔ:pʃən reɪt/ noun a rate at which overhead costs are absorbed into each unit of production …   Dictionary of banking and finance

  • overhead efficiency variance — overhead productivity variance; = productivity variance In a standard costing system, that part of the overhead total variance that arises from the more or less efficient use of the time available to carry out the actual production. It compares… …   Accounting dictionary

  • overhead cost absorbed — overhead cost recovered The actual production for a period multiplied by the overhead absorption rate budgeted for that period …   Accounting dictionary

  • rate per machine hour — A basis used in absorption costing for absorbing the manufacturing overhead into the cost units produced. The formula is: budgeted manufacturing overhead/budgeted machine hours. This rate may not be very useful for managers if overheads do not… …   Accounting dictionary

  • rate per machine hour — A basis used in absorption costing for absorbing the manufacturing overhead into the cost units produced. The formula is: budgeted manufacturing overhead budgeted machine hours. This rate may not be very useful for managers if overheads do not… …   Big dictionary of business and management