Is gross profit comparable to contribution margin?

Question

Ednalyn Banuelos, CMA · Answer

Its different.
Gross profit (Sales Revenue - Cost of Goods Sold); It is the amount available to cover the company's operating expenses.
Contribution Margin (Sales Revenue - variable costs); it is the amount available to cover fixed costs.

Haris Yaqub · Answer

SALES REVENUE - ( DIRECT MATERIAL+ DIRECT LABOR + VARIABLE FACTORY OVERHEADS) = CONTRIBUTION MARGIN, I.E MARGIN TO MEET THE FIXED EXPENSES

Lesley Lanag CMA CPA · Answer

Gross profit (GP) is different from Contribution margin (CM).

GP is the difference between Sales and Cost of Sales under Absorption costing/full costing while CM is the difference between Sales and Variable manufacturing costs under Variable costing. The difference results from different treatment of fixed manufacturing cost under both costing method.

Vinod Jetley · Answer

MALIIK SOHAIL ABBAS · Answer

NO The basic difference B/W

G.P = SALES -CGS

CM= REVENUE - V .MANUFACTURING COST

TREATMENT IS DIFFERENT

Mohammed Aneez Kunhirithiri · Answer

No....

Both are difference in every sense

If you compare both and make a decision on the basis of it, it will lead to trouble

Alex Al Yazouri · Answer

No Sir GP and CM are totally different.

Ahmed kandil · Answer

contribution margin = sales minus variable cost

gross margin = sales - COGS ( both fixed and ( variable )

خدمات بيت.كوم

استخدم تطبيق بيت.كوم

ابدأ بالتواصل مع الأشخاص وتبادل معارفك المهنية

Is gross profit comparable to contribution margin?

عمليات البحث الشائعة

المزيد من الأسئلة المماثلة