Skip to content
Sign inRegister

ACCA Forums

PMDIFFERENCE BETWEEN CONTRIBUTION & PROFIT

Eestelle12y ago
I know i should probably already know this but could someone please clear up the difference between contribution & profit for me? Thanks :-)
GG12y ago#1
In marginal costing, contribution is what you get when you deduct the variable costs from the sales revenue. Then, after deducting the fixed costs from your contribution, you get the profit before tax. So basically, the difference between contribution and profit are the fixed costs. Hope I managed to put it simple. Best of luck!
Eestelle12y ago#2
Thank you!
Sign into reply to this topic.