Abatement Cost

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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. 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 >>
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    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>
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    After a prolonged period of corporate scandals involving large public companies from 2000 to 2002, the Sarbanes-Oxley Act ... Read Full Answer >>
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