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.

RELATED TERMS
  1. Abatement

    A reduction in the level of taxation faced by an individual or ...
  2. Externality

    A consequence of an economic activity that is experienced by ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the ...
  4. Land Rehabilitation

    A re-engineering process that attempts to restore an area of ...
  5. Pigovian Tax

    A special tax that is often levied on companies that pollute ...
  6. Semi-Variable Cost

    A cost composed of a mixture of fixed and variable components. ...
Related Articles
  1. Economics

    Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  2. Economics

    Why Enron Collapsed

    Enron’s collapse is a classic example of greed gone wrong.
  3. Products and Investments

    How Global Warming Could Sink Your Savings

    There's evidence that climate change could impact the global economy and your portfolio. Here's how to protect yourself.
  4. Economics

    Financial Leverage In Corporate Capital Structure

    Corporate management uses financial leverage to increase earnings per share and return-on-equity.
  5. Investing Basics

    Corporate Dividend Payouts And the Retention Ratio

    An investor can use dividend payout and retention ratios to gauge an investment’s possible return, and compare it to other stocks.
  6. Investing News

    How Banning Buybacks Would Help the Economy

    Stock buybacks are popular, but they're not helping the economy. Here's what would happen if they were banned.
  7. Stock Analysis

    The Top 5 Alternative Energy Stocks for 2016 (FSLR, CSIQ)

    Check out the top five alternative energy stocks for 2016 that are poised to rise because of the investment tax credit and the production tax credit extensions.
  8. Economics

    How Leadership Impacts Investments

    Investors often overlook a company’s leadership when evaluating an opportunity, but it’s an important quality to consider.
  9. Investing

    How Investors are Thinking about Climate Risk

    Learn about the four macroeconomic trends focusing on climate risk and sustainability discussed in the most recent Paris summit.
  10. Stock Analysis

    The Top 4 Dividend-Paying Alternative Energy Stocks for 2016 (NEE, NEP)

    Learn about the top four dividend-paying alternative energy stocks, and discover why they are poised to rise and raise their dividends in 2016.
RELATED FAQS
  1. How is abatement cost accounted for on financial statements?

    Abatement costs are accounted for on a company's financial statements through increases in either cost of goods sold or operational ... Read Full Answer >>
  2. When might a business incur abatement costs?

    A business usually incurs abatement costs when it is required to reduce any negative byproducts or potential nuisances that ... Read Full Answer >>
  3. How do modern companies assess business risk?

    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
  4. Why has emphasis on corporate governance grown in the 21st century?

    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>
  5. What impact did the Sarbanes-Oxley Act have on corporate governance in the United ...

    After a prolonged period of corporate scandals involving large public companies from 2000 to 2002, the Sarbanes-Oxley Act ... Read Full Answer >>
  6. Why should investors research the C-suite executives of a company?

    C-suite executives are essential for creating and enacting overall firm strategy and are therefore an important aspect of ... Read Full Answer >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center