Explain term contribution - contribution margin analysis, Managerial Accounting

Assignment Help:

Contribution margin Analysis

Contribution

Contribution is the  difference between sales and variable cost or marginal cost of sales . if may also be defined as the excess of selling price over variable cost per unit , contribute  is also known as contribution margin or gross margin contribution being the excess of sales over variable cost is thye amount that is contribution towards fixed expense and profit .

Contribution can be represented as :

Contribution = sales - variable (marginal) cost

or contribution (per unit) = selling price -variable (or marginal) cost per unit

or contribution = fixed costs +profit(-loss)

 


Related Discussions:- Explain term contribution - contribution margin analysis

Which of the following costs is an example of a cost, Which of the followin...

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

Prepare an estimation of working capital, Prepare an estimation of working ...

Prepare an estimation of working capital needs from the subsequent information of a trading relates with: (a) Projected Annual Sales 1,00,000

Steps of graphic analysis, Steps of Graphic Analysis There are four ste...

Steps of Graphic Analysis There are four steps in using graph paper to study cost-volume relationships: Step 1: Compute the scale which you will use: Volume is considered

What is the main purpose of cost centre, Explain the main purpose of cost c...

Explain the main purpose of cost centre The main purpose of cost centre is two fields. 1. Recovery of cost: costs are collected, classified into two field in respect of

Describe budgetary control according to brown and howard, Budgetary Control...

Budgetary Control According to brown and Howard According to brown and Howard," budgetary control is a system of controlling costs which includes the preparation of budget coor

Cost estimation and management of overhead cost, How might a company use re...

How might a company use regression results to manage overhead costs?

Why is the activity based costing unaccepable for ex, Ask question #Miwhy i...

Ask question #Miwhy is the activity based costing unaccepable for external financial reportnimum 100 words accepted#

Homework.., given the above data what would the breakeven in units and doll...

given the above data what would the breakeven in units and dollars be if u wanted a necessary after tax profit of $ 36,000 (assume a 30% tax rate ) units __________ ales dollars _

International transfer pricing-compliance and documentation, International ...

International transfer pricing Transfer pricing is a perennial issue, within the international tax community (Richard Casna, Accounting and Business, in the year February 1988)

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