Difference between revisions of "Contribution margin"
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According to [[Product Manager's Handbook by Gorchels (2nd edition)]], | According to [[Product Manager's Handbook by Gorchels (2nd edition)]], | ||
:[[Contribution margin]]. The amount of revenue left after incremental costs have been subtracted. | :[[Contribution margin]]. The amount of revenue left after incremental costs have been subtracted. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Contribution margin]]. Sales revenue minus variable expenses. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 11:55, 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.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Contribution margin. Sales revenue minus variable expenses.
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.
