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Difference between Marginal Cost and Contribution. Sometimes both seems to be same to me.
No – they are very different!!
The marginal cost is the variable cost of production (so ignoring any fixed costs and ignoring any other variable costs).
Contribution is the profit before fixed costs (or to put it another way, it is the sales revenue less ALL variable costs).
It might be worthwhile watching my Paper F2 lectures on marginal and absorption costing.
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