Asked by Asona Fagan on Jul 09, 2024
Verified
________ is the amount remaining from manufacturing margin after all variable selling,general and administrative expenses have been deducted.
Manufacturing Margin
The difference between the sales revenue of manufactured goods and the cost of their direct materials and direct labor.
Variable Selling
Costs associated with selling a product that vary with the level of sales activity, such as commissions or shipping fees.
Administrative Expenses
These are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production, or sales.
- Assess and interpret the contribution margin along with the manufacturing margin.
Verified Answer
MM
Learning Objectives
- Assess and interpret the contribution margin along with the manufacturing margin.