Business Chapter 13 Flashcards
1
Q
Contribution
A
The amount of money left over from revenue. The money contributes to fixed costs and profit
2
Q
Contribution costing
A
The use of contribution to help make decisions based on costs, such as which order to accept
3
Q
Contribution pricing
A
A pricing strategy that involves setting a price that exceeds the value of the variable cost
4
Q
Overheads
A
On overhead cost or expense, for example lighting, equipment and any extras paid for out ota centrolised budget
5
Q
Total contribution
A
The amount of money left over from the sale of several units, or an order, after variable costs have been covered
6
Q
Unit contribution
A
The amount of money left over from the sole of a single unit after variable costs have been covered
