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Contribution margin

Sales less variable cost of goods sold and variable selling and administrative expenses.

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Related terms

contribution margin
Financial services; General Finance

The difference between variable revenue and variable cost.

contribution margin
Software; Operating systems

For each unit, the amount that remains after subtracting the variable cost of the unit from the selling price.

contribution margin
Accounting; General accounting

Sales less variable cost of goods sold and variable selling and administrative expenses.

contribution margin
Health care; Insurance; Managed care; Health insurance

Amount remaining aft er subtracting variable costs from revenues. It is the profit of each new medical service unit available to cover all health care costs.

margin
Retail; Supermarkets

The difference between the cost and the retail selling price of goods.

margin
Banking; Investment banking

(1) Difference between the lending and deposit rates of a bank, between purchase and sale prices or between bid and ask rates. See also interest margin or spread. (2) Security ...

earnest money
Accounting; General accounting

A deposit paid to show good faith is termed as earnest money in accounting and this deposit enhances affiliation.

account
Accounting; General accounting

Record of all transactions. It can be a bank account.

arbitrage
Accounting; General accounting

Taking advantage of countervailing prices in different markets by the purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related ...

balance of payments
Accounting; General accounting

A record of transactions with the rest of the world over a particular time period. These include merchandise, services and capital flows.

back Office
Accounting; General accounting

The departments and processes related to the settlement of financial transactions (i.e. written confirmation and settlement of trades, record keeping).

derivative instruments
Accounting; General accounting

Financial instruments where the value or change in value is derived from an underlying instrument. Examples of derivative instruments include options, forwards and swaps. ...

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