absorption rate
noun[C]
ukusACCOUNTING(alsooverhead absorption rate);(alsorecovery rate)
thepercentageoffixedcosts(=coststhat are the same eachmonth)that acompanypaysfor with theprofitsfromparticularproductsandservices:
Thecardealershipcoversmost ofitsfixedoperatingcostswithgrossprofitsfromserviceandpartsoperations, but this 90%absorptionrateisunusualin theindustry.
PROPERTY(alsoreal-estate absorption rate)
therateat whichhomesin aparticularareaare beingsold:
Anabsorptionrateof 6indicatesabalancedmarket, while thecurrentfigurefor theareaof 9.2showsthat it is a buyer'smarket.