The contribution margin per unit is divided by the selling price of the product to calculate ______________?
Correct answer: D. contribution margin percentage
- A. selling margin percentage
- B. cost margin percentage
- C. discount percentage
- D. contribution margin percentage
Explanation
Contribution margin percentage measures the contribution margin per unit as a proportion of selling price, so it is calculated as contribution margin per unit divided by selling price.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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