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Contribution margin: This term is defined as?

1. Sales minus fixed costs.

2. Sales minus variable costs.

3. Sales minus gross profit.

 

 

Cost Accounting
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Question added by Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate
Date Posted: 2015/03/10
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Arminah Raiza Kundo
by Arminah Raiza Kundo , Junior Auditor , Sycip Gorres Velayo & Co. (SGV & Co)- Davao a member practice of Ernst & Young Global Ltd

Contribution Margin is defined as the difference between the sales and variable cost.

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