Abatement Cost
Categories: Accounting, Company Valuation, Investing
The cost of clean-up for the mess you've left. A block party leaves crap all over the streets. The neighbors are charged, and there's an abatement cost for singed pavement, dead fireworks, and half-eaten burgers. Same deal in corporate America and the world, where oil drilling companies have a platform blow-up or leak...and then 10,000 seagulls take a bath in oil and have to be cleaned up. The mess must be...abated. Nuclear waste, arsenic (from semiconductor etching), and noise from Justin Bieber concerts leaking into the yards of neighbors...are all things that must be abated.
