What does absorption account mean?

absorption account meaning in Law Dictionary

1. Undergoing creating a financial statement a ledger account is absorbed into another. 2. The account where overhead is detailed from the volume of production.

absorption account meaning in Business Dictionary

1. Ledger account consumed into various other accounts when you look at the preparation of a financial statement. 2. Account that presents the total amount of overhead borne by (recharged against) the quantity of manufacturing.