Express the two ways of contribution margin?

Q: Define and explain the contribution margin ratio.

A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…

Q: How do you calculate contribution margin?

A: The contribution margin can be calculated by deducting the variable cost from the sales revenue.

Q: Discuss how contribution margin can be maximized when one factor limits productive capacity.

A: In this question, we are taking the example of a small medical. Factors that would most likely to…

Q: Define cost-volume-profit analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Define and explain the contribution margin.  Include the difference in fixed and variable costs in…

A: Contribution margin may be defined as the amount of profit generated when only the cost of goods…

Q: What are the three ways contribution margin can be expressed?

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: Describe the uses of cost-plus pricing.

A: Cost plus pricing involves adding a markup to the cost of goods and services to arrive at a selling…

Q: Define the term contribution margin.

A: Contribution margin is defined as the term which determines the profitability of the individual…

Q: Explain the difference between fixed cost and variable cost? Support your answer with examples

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Define Contribution margin? Give three examples?

A: Contribution Margin: Contribution margin is the excess of selling price over the variable costs of a…

Q: n be obtained from this rating?

A: Given: To analyse the cost classification with the benefits as follows,

Q: a. Define and explain contribution margin on a per unit basis.

A: Contribution margin is the amount of sales revenue over and above it's variable costs in the…

Q: Why aren’t common costs allocated to segments under the contribution approach?

A: Segment margin is a useful measure to assess the performance of an operating unit.   A common fixed…

Q: Define ( a ) contribution margin, ( b ) contribution marginratio, and ( c ) average contribution…

A: Contribution margin helps management to determine the amount of sales revenue left after considering…

Q: What costs are assigned to a segment under the contribution approach?

A: Contribution approach is approach used to present income statement in which all the variable costs…

Q: What are the two components that can affect the contribution margin? Why is it important to…

A: The two components that can affect contribution margin: 1) Number of units sold. 2) Price / cost per…

Q: Describe the components of contribution margin.

A: Contribution Margin: Contribution Margin refers to the margin of profit expected by the company. The…

Q: Define and distinguish between contribution margin per unit and contribution margin percentage?

A: Contribution margin is the difference between the total revenue and total variable costs of a…

Q: Define conversion costs?

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: Explain how the segment margin differs from the contribution margin.

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: How is contribution margin calculated? What about contribution margin ratio? Aren’t they the same…

A: Subtracting the selling price per unit from the variable cost per unit yields the contribution…

Q: What is the weighted average contribution margin percentage?

A: Contribution margin ratio of the business shows ratio of contribution margin with sales revenue of…

Q: Define direct costs and indirect costs?

A: Direct cost: Direct cost is the cost assigned to the cost object which is directly related to that…

Q: What is the difference between total costs and marginal costs?

A: Total cost is the total economic cost of production. Variable cost changes according to the quantity…

Q: What does the Unit contribution margin express?

A: Break Even Point:                 Break Even Point is defined as the level where there is no profit…

Q: Define Joint costs?

A: Joint Products: When two are more products are produced in a process using the same basic raw…

Q: Briefly define total cost and marginal cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What does the Contribution margin equation express?

A: Break Even Point:                 Break Even Point is defined as the level where there is no profit…

Q: Define the following terms: incremental cost, opportunity cost, and sunk cost.

A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…

Q: Explain how to prepare contribution margin income statement.

A: Contribution margin:   Contribution margin refers to the process or theory that is used to judge the…

Q: What is recalculated cost?

A: Cost: It implies to the amount that is paid or spent on a specified task or activity. It indicates…

Q: Define cost pool?

A: Step 1 The amount of money expended on producing a particular product is referred to as cost. Direct…

Q: How can we determine the equivalent benefits as well as the equivalent costs.?

A: The annual cost of an asset maintenance before the replacement cost arises is known as equivalent…

Q: Describe the concepts of contribution margin, relevant range, and relevant costs

A: Solution:- Analysis the concepts of contribution margin, relevant range, and relevant costs as…

Q: What is a cost-volume-profit analysis?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Contribution margin is

A: The formula Contribution= sales - variable cost

Q: What can be the Direct-Variable Costs?

A: Fixed cost means the cost which do not vary with the level of output. Variable cost means the cost…

Q: Define the following terms: differential cost, sunk cost, and opportunity cost.

A: Differential cost:  Differential cost is the change in total cost due to increase or decrease in…

Q: Which of the following is the best definition of a variable cost?

A: Types of Costs 1. Variable Cost: The cost which changes with the change in the level of activity is…

Q: Explain contribution margin.

A: Contribution Margin is the amount of revenue available after variable costs to cover fixed expenses…