The phrase "absorb a cost" is correct and usable in written English.
It can be used in contexts where a business or individual takes on an expense without passing it on to others.
Example: "Due to the unexpected increase in material prices, we have decided to absorb the cost rather than raise our prices."
Alternatives: "bear the expense" or "take on the cost".
"(2) the grade or quality of the milk purchased, and (3) the locations at which delivery of such milk, or any use classification thereof, is made to such handlers". The market differential does not, strictly speaking, compensate the producer for absorbing a cost to the handler for it may be no additional cost to the producer to deliver to a city plant.
It will go to the consumer because no business can absorb a 40% cost increase, so it will lead to food inflation, and also less choice," he added.
Are these impacts you are willing to simply absorb as a cost of doing business?
Within this framework, firms build their competitive advantage not on resources and capabilities as the resource-based view (RBV) suggests but on asymmetries in skills, processes and a variety of tangible and intangible assets (including cultural values) which their competitors cannot copy and/or absorb at a cost that afford economic rents.
Roger Wiltshire, chief executive of the British Air Transport Association, said: "We were not able to fly and we had to absorb a lot of extra cost in looking after passengers".
The International Institute for Strategic Studies in London thinks that personnel costs absorb a third of the budget in China, compared with about 45% in India and at least 50% in America.
Tom Cushman, the owner of Maine Custom Woodlands, a logging company in New Gloucester, said many logging truckers were unable to absorb a rise in fuel costs because their contracts were drafted once a year.
Bob Middleton, the chief executive of LoC02, said he had been forced to raise the variable rate on electricity because the business has been forced to absorb a 10% increase in costs from a variety of sources.
In Italy the public kindergartens (almost 153,000 children enrolled) absorb an average annual cost by municipalities of 7,481 euro and an average contribution from the families of 1,796 euro per child (ISTAT, 2014).
This makes financial sense in industries with high fixed costs and low variable costs: larger sizes enable the company to charge higher prices that, even if they are just slightly larger, absorb a higher portion of fixed costs, while reducing packaging cost per volume and attracting value-minded consumers.
