Difference between revisions of "Contribution margin"
| Line 7: | Line 7: | ||
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. | ||
| + | According to [[Product Manager's Handbook by Gorchels (2nd edition)]], | ||
| + | :[[Contribution margin]]. The amount of revenue left after incremental costs have been subtracted. | ||
==Related concepts== | ==Related concepts== | ||
| Line 14: | Line 16: | ||
*[[Principles of Accounting]]. | *[[Principles of Accounting]]. | ||
| − | [[Category: International Accounting]][[Category: Articles]][[Category: Accounting]] | + | [[Category: International Accounting]][[Category: Articles]][[Category: Accounting]][[Category: Product Management]] |
Revision as of 10:29, 14 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.
According to Product Manager's Handbook by Gorchels (2nd edition),
- Contribution margin. The amount of revenue left after incremental costs have been subtracted.
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.
