absorb costs

USAGE SUMMARY

The phrase "absorb costs" is correct and usable in written English.
It is typically used in a business or financial context to describe a situation where a company takes on expenses without passing them on to customers. Example: "In order to maintain customer loyalty during the economic downturn, the company decided to absorb costs rather than increase prices."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

20 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

But companies affected by the legislation are likely just to claw the money back: minimum-wage employers tend to operate in areas of the economy where margins are too low to absorb costs.

The Guardian

Like everything, this slowdown in growth has its downside: fewer new jobs, less affordable housing, and higher property taxes as there is less new housing and industry to absorb costs.

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

Human-verified similar examples from authoritative sources

Similar Expressions

37 human-written examples

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

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

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

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

Also, Sears expects to reap savings of more than $200 million a year as Citigroup absorbs costs associated with the Sears zero-percent financing programs.

The New York Times

Expert writing Tips

Best practice

When using "absorb costs", consider whether it's more appropriate to specify who is absorbing the costs and why. This adds clarity and context to your writing.

Common error

Avoid using "absorb costs" when the costs are merely delayed or transferred to another party. "Absorb" implies the costs are truly taken on without external impact.

Linguistic Context

The phrase "absorb costs" functions as a verb phrase where "absorb" is the verb, and "costs" is the direct object. According to Ludwig, the phrase is grammatically correct. The examples show the phrase is used to describe the act of assuming financial responsibility.

Expression frequency: Common

Frequent in

News & Media

50%

Science

31%

Formal & Business

19%

Less common in

Wiki

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "absorb costs" is a common and grammatically correct expression used to describe the act of taking on expenses without passing them on to others. Ludwig AI confirms its grammatical correctness and its prevalent use in news, science, and business contexts. The phrase is suitable for neutral to professional registers. Related phrases include "assume costs" and "cover expenses". When using "absorb costs", ensure it accurately reflects a genuine taking on of expenses, rather than a mere transfer or delay.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Assume costs

Shifts focus to taking on the financial responsibility.

Cover expenses

Highlights the act of providing sufficient funds for costs.

Underwrite expenses

Emphasizes guaranteeing coverage of costs, especially for projects.

Shoulder the burden of costs

Highlights the responsibility of bearing the financial load.

Internalize costs

Focuses on integrating the cost within the company instead of passing on to someone else.

Defray costs

Emphasizes providing funds to alleviate expenses.

Offset expenses

Highlights counterbalancing expenses with other financial gains.

Mitigate costs

Emphasizes reducing or lessening the severity of costs.

Handle costs

Emphasizes dealing with the cost management.

Bear costs

Focuses on enduring or carrying the burden of the costs.

FAQs

What does "absorb costs" mean in a business context?

In a business context, "absorb costs" means to take on expenses without passing them on to consumers or other stakeholders. Companies might "absorb costs" to maintain competitive pricing or customer loyalty.

What are some alternatives to saying "absorb costs"?

Alternatives to "absorb costs" include "assume costs", "cover expenses", or "underwrite expenses" depending on the specific nuance you wish to convey.

Is it better to "absorb costs" or pass them on to consumers?

The decision to "absorb costs" or pass them on depends on various factors, including market conditions, competitive pressures, and the company's financial health. "Absorbing costs" can maintain customer loyalty, but it may impact profitability.

How can a company "absorb costs" effectively?

Companies can "absorb costs" through increased efficiency, cost-cutting measures in other areas, or by leveraging economies of scale. Strategic financial planning is essential.