• +91 9723535972
  • info@interviewmaterial.com

Cost Accounting Interview Questions and Answers

Question - Describe The Contribution Margin Ratio?

Answer -

The contribution margin ratio is the percentage of sales, service revenues or selling price that remains after all variable costs and variable expenses have been covered. In other words, the contribution margin ratio is the percentage of revenues that is available to cover a company's fixed costs, fixed expenses, and profit. (The contribution margin ratio is different from the gross margin ratio or gross profit percentage and cannot be computed directly from the reported amounts on the company's external income statement.)

Comment(S)

Show all Coment

Leave a Comment




NCERT Solutions

 

Share your email for latest updates

Name:
Email:

Our partners