Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Determine the difference between contribution margin and Gross margin.

Accounting Cost Accounting Financial Accounting CMA Costing
user-image
Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/05/09
Upvote (0) Views (9) Followers (1) Answers (2) Report Question
Write an Answer
Register now or log in to answer.
Naveed Azam
by Naveed Azam , Accountant General , Desert Adventures Tourism LLC

Contribution margin is calculated by deducting variable cost from the selling price and gross margin is calculated by deducting directly attributable cost from selling price.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

The calculation of the Gross Profit is: Sales minus Cost of Goods Sold. The Cost of Goods Sold consists of the fixed and variable product costs, but it excludes all of the selling and administrative expenses. 

Contribution Margin is Net Sales minus the variable product costs and the variable period expenses

Write Your Answer
More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.

Get Help