Allocation of costs to cost objects may be described as absorb or apply.

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The terms "absorb" and "apply" are commonly used to describe the process of allocating costs to cost objects. When costs are absorbed, they are included as a part of the total cost of the object. When costs are applied, they are assigned to the object based on some predetermined method, such as a cost driver or allocation rate. Both terms refer to the same general process, but may have slightly different nuances depending on the context.

Allocation of Costs to Cost Objects May Be Described as Absorb