Abatement Cost

DEFINITION of 'Abatement Cost'

A cost borne by many businesses for the removal and/or reduction of an undesirable item that they have created. Abatement costs are generally incurred when corporations are required to reduce possible nuisances or negative byproducts created during production.

BREAKING DOWN 'Abatement Cost'

Examples of abatement costs would be the pollution reduction costs of paper mills and noise reduction costs of manufacturing plants.

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RELATED FAQS
  1. When might a business incur abatement costs?

    Discover when a business might incur abatement costs; learn examples of such costs and why abatement costs affect a company's ... Read Answer >>
  2. How is abatement cost accounted for on financial statements?

    Understand what abatement cost is and how it is caused by various companies. Learn how abatement cost is accounted for on ... Read Answer >>
  3. How can I obtain an abatement for property taxes?

    Find out how to obtain a property tax abatement, why abatements are issued, and the role of a county or city assessor's department ... Read Answer >>
  4. When might an abatement be granted by the IRS?

    Learn how the IRS may grant an abatement request when a reasonable cause is present or undue hardship is imposed on a taxpayer ... Read Answer >>
  5. How are fixed costs treated in cost accounting?

    Learn how fixed costs and variable costs are used in cost accounting to help a company's management in budgeting and controlling ... Read Answer >>
  6. What are the differences between period costs and product costs?

    Find out why GAAP separates all company expenses into either period or production costs and how this impacts the way expenses ... Read Answer >>
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