Variable/Direct/Marginal and Absorption CostingDiscussion Questions and Answers:Questions:
Answers:
When using a variable costing system the contribution margin discloses the excess of?contribution margin. 14. When using a variable costing system, the contribution margin discloses the excess of... Revenues over variable costs.
What is contribution margin CM1 CM2 CM3?Contribution margin. CM1 is just after transaction costs (e.g. payment costs). CM2 adds customer service. CM3 adds marketing. CM4 adds overhead.
What is contribution margin under variable costing?What is the Variable Contribution Margin? Variable contribution margin is the margin that results when variable production costs are subtracted from revenue. It is most useful for making incremental pricing decisions where an entity must cover its variable costs, though not necessarily all of its fixed costs.
What is contribution margin in marginal costing?The contribution margin is computed as the selling price per unit, minus the variable cost per unit. Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company.
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