See Also: How to Prepare a Break Even Analysis Cheif Financial Officer (CFO) Cost Accounting Yield Curves Financial Ratios Absorption Cost Accounting Variable Cost Definition In accounting, variable costs are costs that vary with production volume or business activity. Variable costs go up when a production company increases output and decrease when the company slows
See Also: Margin vs Markup Segment Margin Marginal Costs Segmenting Customers for Profit Financial Ratios Contribution Margin Definition Contribution margin (CM), defined as selling price minus variable cost, is a measure of the ability of a company to cover variable costs with revenue. The amount leftover, the contribution, covers fixed costs or is profit. Contribution
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