Contribution, Cost Accounting

Assignment Help:

CONTRIBUTION: It is the variation between the marginal cost of sales and sales and it contributes towards fixed profit and expenses.  It is differ from the profit which is the net gain in activity or the extra and remains after deducting fixed expenses from the entire contribution.  In marginal costing, the idea of contribution is very essential as it helps to observe the profitability of a product, department or division, to have a better product mix, for maximize the profits and profit planning to of a concern.

Contribution = Sales - Variable cost (or) Fixed cost +Profit (or) Fixed cost - Loss


Related Discussions:- Contribution

Semi fixed costs, Semi Fixed Costs Are costs along with both a variabl...

Semi Fixed Costs Are costs along with both a variable and fixed cost component? The fixed component is such portion that is constant irrespective of the level of activity. The

Why communities begin using fca, Q. Why communities begin using FCA? Th...

Q. Why communities begin using FCA? There are several reasons why communities start by means of FCA. For instance: • To elucidate more evidently MSW costs to people. • It is

Analyzing direct material costs, You are reviewing a cost proposal, which i...

You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the proposal, you note that there are 500 material items, but y

Material costs - cost accumulation, Material Costs - Cost Accumulation ...

Material Costs - Cost Accumulation However 'Materials' refer to the tangible inputs into the procedure of producing useful output.  They might be indirect materials or direct

Marginal costings, how marginal cost of a product is determined?

how marginal cost of a product is determined?

Generally accepted accounting principles, Generally Accepted Accounting Pri...

Generally Accepted Accounting Principles (GAAP) -Rules, conventions and procedures essential to define accepted accounting practice at a specific time. The highest level of such pr

Elements of manufacturing cost, i want some informations about elements of ...

i want some informations about elements of manufacturing cost

Demerits of break even point, DEMERITS OF BREAK EVEN POINT 1. It pays n...

DEMERITS OF BREAK EVEN POINT 1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc 2. Fixed cost, enti

Uses of funds, Dividends                                                   ...

Dividends                                                                                        ................ Non-operating losses not passed through P and L A/c

Estimated net income, What will be the cost of Well Water after considering...

What will be the cost of Well Water after considering the financing surrounding the purchase (savings on the loan), Well Water's (net) working capital situation, and the additional

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd