Difference between revisions of "Contribution margin"
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:[[Contribution margin]]. A department's net profit, used to cover indirect expenses. | :[[Contribution margin]]. A department's net profit, used to cover indirect expenses. | ||
According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
| − | [[Contribution margin]]. Total revenues minus total variable costs. | + | :[[Contribution margin]]. Total revenues minus total variable costs. |
==Related concepts== | ==Related concepts== | ||
Revision as of 19:35, 10 July 2020
Contribution margin is a department's net profit, used to cover indirect expenses.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Contribution margin. A department's net profit, used to cover indirect expenses.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Contribution margin. Total revenues minus total variable costs.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
