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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  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 >>
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    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
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