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.