passwella.
Menu

JAMB Principles of Accounts 1998 Question 26

Question 26

Manufacturing Accounts

The contribution margin on a job is the

  1. A.gross profit
  2. B.net profit
  3. C.excess of sales revenue over variable costs
  4. D.difference between fixed and variable costs.
Show the answer and explanation

Answer: C (excess of sales revenue over variable costs)

Explanation

Contribution = sales revenue − variable costs.