Contribution margin is the excess of revenues over:
A)all variable costs.
B)manufacturing cost.
C)all direct costs.
D)cost of goods sold.

Question

Quizplus · Accepted Answer

Contribution margin is calculated by subtracting all variable costs from revenues. This means that only choice A, which includes all variable costs, is the correct answer. Choices B, C, and D are all either too broad or do not include all variable costs.

Contribution Margin Is the Excess of Revenues Over