Contribution margin per unit in this case the air cut is the amount by which sales or income revenue is goes beyond or exceeds the amount of variable costs. Contribution margin can be calculated as the total contribution margin and the contribution margin per unit (Pinson, 2008). The formula for the calculation is as follows;
Contr... read more
2 pages
600 words
Absorption and Variable cost accounting methods
Both absorption and variable cost accounting methods are important in determining and allocating costs in a manufacturing company. Absorption cost accounting method uses all costs in a manufacturing company, while, allocating costs, regardless of whether they are fixed or variable. Th... read more
5 pages
1500 words
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