The revenues are subtracted from the cost of direct materials of sold goods is to calculate _________?

Correct answer: A. throughput contribution

A. throughput contribution
B. operating cost contribution
C. operating contribution
D. marginal contribution

Explanation

Throughput contribution equals sales revenue minus the direct material cost of goods sold, because direct materials are treated as the principal variable cost. The other contribution terms do not use this standard formula.

Written and checked by Zahid Hussain, editorLast updated 18 September 2026

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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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Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

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The revenues are subtracted from the cost of direct materials of sold goods is to calculate _________?

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