absorb cost

USAGE SUMMARY

"absorb cost" is a correct and usable phrase in written English.
You can use this term when you are discussing a situation in which one party takes on the financial burden of another, such as a company absorbing the cost of a customer's return shipping. For example, "The store agreed to absorb the cost of the customer's return shipping."

✓ Grammatically correct

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

8 human-written examples

And Pratt & Whitney has said it would make a new contract offer to the Pentagon under which it would also absorb cost increases.

The New York Times

Because other parts of this "stockpile stewardship" program may have to absorb cost overruns at the ignition facility, its political support has eroded.

The New York Times

Improvements in productivity, or output per hour, mean that companies can pay higher wages or absorb cost increases without passing them along to their customers.

The New York Times

Details of the standoff between Tesco and Unilever emerged just a few hours after Justin King, a former boss of Sainsbury's, warned that supermarkets could not absorb cost increases caused by the falling pound and that price rises were inevitable.

The Guardian - Business

Justin King, a former boss of Sainsbury's, warned earlier this month that supermarkets could not absorb cost increases caused by the falling pound and that price rises were inevitable.

The Guardian - Business

[Market Place, Page C1.] The central bank allowed the economy to expand for the last several years at rates well above what conventional wisdom once thought could be sustained without igniting inflation, betting that huge investments in technology would allow companies to absorb cost increases without raising prices.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

52 human-written examples

Fee waivers indicate how willing managers are to absorb costs to keep your principal whole.

The New York Times

She had taken on a second career to help absorb costs.

The New York Times

"Managers of smaller funds are not in as good a position to absorb costs," said Jay Baris, a lawyer who represents several mutual fund boards.

The New York Times

That leaves Grady to absorb costs of up to $50,000 a year per dialysis patient, some of whom have availed themselves of the thrice-weekly treatments for years.

The New York Times - Health

Some like Anglesey have chosen to raise their council tax by 5% to absorb costs while Cardiff is freezing its charges and looking for savings by axing jobs.

BBC

Expert writing Tips

Best practice

When using "absorb cost", consider the context and whether it implies a temporary or long-term strategy. For instance, a company might "absorb cost" during a promotional period but not indefinitely.

Common error

Avoid using "absorb cost" when the intention is to lower expenses rather than simply take on existing ones. "Absorbing" means accepting the expense as is, while "reducing" implies active measures to decrease it.

Linguistic Context

The phrase "absorb cost" functions as a verb phrase + noun construction. It describes the action of taking on or covering a financial expense. As Ludwig AI states, it indicates a party taking on the financial burden.

Expression frequency: Uncommon

Frequent in

News & Media

66%

Science

34%

Formal & Business

0%

Less common in

Wiki

0%

Encyclopedias

0%

Academia

0%

Ludwig's WRAP-UP

The phrase "absorb cost" is a useful expression for describing how a person, company or entity handles an expense without passing it on to others. As Ludwig AI confirms, it is grammatically correct. While not as common as some alternatives, "absorb cost" appears frequently in news and media, as well as in scientific contexts. When using the phrase, remember that it implies accepting an existing expense rather than actively reducing it. Be mindful of whether the entity is managing a temporary or long-term strategy. Alternatives like "assume the expense" and "shoulder the cost" can provide subtle differences in meaning.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

assume the expense

Focuses on taking on the financial responsibility.

shoulder the cost

Implies bearing the burden of the cost.

take on the financial burden

Emphasizes the weight of the financial obligation.

offset the expenditure

Suggests balancing out the cost with a counteracting factor.

internalize the expense

Highlights integrating the cost within an organization's budget.

defray the charges

Implies providing funds to cover the cost.

meet the financial obligations

Focuses on fulfilling the responsibility to pay.

handle the financial implications

Addresses the consequences of the cost.

manage the outlay

Concentrates on the control and direction of the expenditure.

incorporate the expenditure

Highlights adding the expenditure within a plan.

FAQs

How can I use "absorb cost" in a sentence?

You can use "absorb cost" to describe a situation where an entity takes on financial responsibility. For example: "The company decided to "absorb the cost" of the new regulation to remain competitive".

What are some alternatives to "absorb cost"?

Depending on the context, alternatives to "absorb cost" include "assume the expense", "shoulder the cost", or "offset the expenditure".

Is it better to "absorb cost" or "pass on cost" to consumers?

Whether to "absorb the cost" or pass it on depends on factors like market competition, price sensitivity, and brand strategy. Absorbing costs can maintain customer loyalty but might reduce profit margins. Passing on costs maintains margins but could drive customers away.

What does it mean when a company says it will "absorb the cost" of something?

When a company says it will "absorb the cost", it means they will not pass the expense on to the consumer in the form of higher prices, or to employees in the form of wage cuts. They will "cover the cost" from their existing revenue or find internal efficiencies.