Contribution margin

Cost and management accounting.

1.

Revenues less Variable costs for a line of business or a particular contract.

The contribution to covering fixed costs.

2.

Revenues less Variable costs calculated and expressed per unit of production.

See also

• Break even point
• Contribution
• Contribution analysis
• Contributions
• Fixed cost
• Limiting factor
• Management accounting
• Margin of safety
• Scarce resource analysis
• Variable cost