Marginal Contribution Costing: Difference between revisions
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(Created page with "What is it? Sales Revenue - VC = Contribution to Fixed Costs The process to generate Contribution Costs is Benefits Good for comparison between different products and their con...") |
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Should only be done as one off for special pricing | Should only be done as one off for special pricing | ||
See [[Standard Costing]] [[Absorption | See [[Standard Costing]] [[Absorption Costing]] [[ABC]] | ||
[[Category:Finance]] | [[Category:Finance]] | ||
Latest revision as of 15:02, 28 December 2010
What is it? Sales Revenue - VC = Contribution to Fixed Costs
The process to generate Contribution Costs is
Benefits Good for comparison between different products and their contribution to Fixed costs Good for special pricing products Ignore irrevelant costs past costs / sunk costs
Disadvantages
Should only be done as one off for special pricing
