Throughput contribution is defined as sales revenue minus:

Answer option (A)  >>>>>>>>>>>>   Direct materials costs

Throughput contribution = revenue -direct material cost us used to know in decision making if to continuing produce this product or not Contuning produce this this product example if revenue100 dollar and direct material cost105 this mean this product did not even share in overhead cost no this product make lose5 dollar for each unite

Direct materials, direct labor, and variable manufacturing costs.

Contribution = Sales Minus Variable Cost

A) is the right answer as throughput contribution = revenue - direct material

 

Throughput = Sales Revenue minus Total Variable Cost

The Throughput Contribution is Revenue minus variable cost, So C is the right answer.