Contribution Margin

Contribution Margin

Contribution Margin: DefinitionIn a very simple language, contribution margin means the excess of selling price over the variable cost of manufacturing. This term has… Read Article
Break Even Point

Break Even Point

Break-Even Point DefinitionThe Break-even point (BEP) is the level of production where the company’s total revenues and expenses are equal. At the BEP, the… Read Article
Margin of Safety

Margin of Safety

The margin of safety is a tool used in CVP analysis. A business is profitable when revenue exceeds the costs. A part of the… Read Article