Abatement Cost

Posted in Finance, Accounting and Economics Terms, Total Reads: 1219

Definition: Abatement Cost

Abatement cost can be defined as the cost incurred in removal of an unnecessary object created earlier in business. Abatement cost can be found in any type of business but are most common in manufacturing business like factory etc.


In a business, mostly tangible product business, while preparing the deliverables the construction unit creates a lot of unrequired waste materials which are supposed to be disposed. Now, disposing is not free, it comes at a cost which is abatement cost. As we discussed the disposable can be tangible or intangible.



Mostly the disposables are in manufacturing business. The recycling of waste material etc. costs a lot. But In IT industry the example can be taken as the data which is of no use. You have to hire professionals to identify that type of data and delete it. Again this is abatement cost.


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