For example, suppose that a city has 1,000 homes currently on the market to be sold. If buyers snap up 100 homes per month, the supply of homes will be exhausted in 10 months (1,000 homes divided by 100 homes sold per month). If a homeowner is looking to sell a piece of property, he knows that half of the market will be sold out in five months. This rate does not take in to account additional homes that enter the market. The absorption rate can also be a signal to developers to start building new homes.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
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 — 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 — Fin see overhead absorption rate … The ultimate business dictionary
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
Absorption rate — Скорость поглощения, скорость впитывания … Краткий толковый словарь по полиграфии
Specific absorption rate — (SAR) is a measure of the rate at which radio frequency (RF) energy is absorbed by the body when exposed to radio frequency electromagnetic field. It is defined as the power absorbed per mass of tissue and has units of Watts per kilogram [cite… … Wikipedia
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
overhead absorption rate — See: absorption rate … Accounting dictionary