Home »
MCQs »
Commerce MCQs »
Marginal and Absorption Costing MCQs
Difference between selling price & variable cost refers to?
3. Difference between selling price & variable cost refers to?
- Direct Costing
- Contribution
- Profit
- None of the above
Answer: B) Contribution
Explanation:
Contribution is how much profit stays after all immediate expenses have been deducted from income. This remaining portion is the sum accessible to pay for any decent costs that a business brings about during an announcing period. Any overabundance of commitment over fixed costs rises to the benefit acquired.