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

Analysis of fund flow and cash flow statements, After you have studied this...

After you have studied this section, you should be capable to: know the idea of funds flowing by a business in a dynamic situation understand the role of working capital

Realized gain or loss on the exchange, Pauline's Pastry Shop decides to rem...

Pauline's Pastry Shop decides to remodel its offices this year. As part of the remodeling, Pauline's trades furniture with a cost of $12,000 that had been expensed in the year of p

Identify the relevant per-unit costs, Bakers Bagels LLC produces and sells ...

Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid

Differential costing, explain the practical application of differential cos...

explain the practical application of differential costing with the help of suitable example.

Standard costing, behavioral aspect of standard costing

behavioral aspect of standard costing

DIVIDEND POLICY, EARNINGS AFTER TAX-1500000 NUMBER OF EQUITY SHARE OUTSTAND...

EARNINGS AFTER TAX-1500000 NUMBER OF EQUITY SHARE OUTSTANDING-300000 DIVIDEND PAID 600000 PRICE-EARNING RATIO-101 RATE OF RETURN ON INVESTMENT-20% WHAT IS OPTIMUM DIVIDEND PAY OUT

What is operating costing, Describe Operating Costing The Chartered Ins...

Describe Operating Costing The Chartered Institute of Management Accountants, London defines "operating cost" as "the cost of providing a service." Services performed may be in

Calculate the direct-material price and quantity variances, Quicksilver Com...

Quicksilver Compnay has set the follwoing standards for one unit of product: Direct material Quantity: 6.2 lbs per unit Price per lb: $11 per lb Direct Labor Quantity: 6 hrs

Commodities to stock, Commodities to Stock Employ Material Req...

Commodities to Stock Employ Material Requirement Planning From the Master Production Schedule the manager has determined such the products to be produced. A

Organization of budgetary control, Organization of Budgetary Control B...

Organization of Budgetary Control Budgetary control ideally includes the given steps as: 1. The creation of budget centres. 2. The introduction of sufficient

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