Contribution Margin

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  • เผยแพร่เมื่อ 15 ต.ค. 2024
  • This video explains what the Contribution Margin is in the context of managerial accounting. The formula for calculating a firm's Contribution Margin is provided, and several examples are used to demonstrate how Contribution Margin is calculated and used in actual practice.
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ความคิดเห็น • 64

  • @richardh4572
    @richardh4572 ปีที่แล้ว +41

    I received notification this week that I passed my CMA - wouldn't have happened without a whole lot of your videos and practise tests.
    The fact that you provide this and other course material without charge is so amazingly wonderful and inspiring. Thank you.

    • @Edspira
      @Edspira  ปีที่แล้ว +6

      Congratulations on passing the CMA exam, Richard! I am truly honored to have been a part of your educational journey, and I know it must have been a lot of work watching all those videos and doing the exams. I'm so happy for you and hope the achievement is everything you imagined it would be. I hope you find tremendous fulfillment, both personally and professionally! Wishing you the very best my friend 😀

  • @JamesTownsendJian
    @JamesTownsendJian 8 ปีที่แล้ว +59

    This was very well done. My accounting textbook made it vague and difficult to understand. Hence why it's a college textbook or else it'd have been a proper book.
    You cleared up all my questions, along with at least a half an hour of wasted time, in just a few short minutes. Kudos to you, sir. Kudos to you.

  • @zenandezenande3941
    @zenandezenande3941 6 ปีที่แล้ว +7

    this guy deserves a Nobel Prize.He is straight to the point....Thanks for the content

  • @lucienibrahim5893
    @lucienibrahim5893 7 ปีที่แล้ว +25

    dude you make life easier I learn more from you than i do from my instructors thanks!!

  • @kristoferho7288
    @kristoferho7288 6 ปีที่แล้ว +13

    My Accounting ACCT 205 Professor from University of Kansas recommended this video to review for the exams and the final exam $$$$$

  • @saniviersapphire5395
    @saniviersapphire5395 6 ปีที่แล้ว +7

    We discussed this in class for an hour and yet I learned a lot more from this 5 minute video. Thanks sir!

  • @felicia3525
    @felicia3525 6 ปีที่แล้ว +6

    Thank you soooo much! I now understand. It seems as though teachers leave out small important details because they already know it. You saved me at least an hour. Now I get to enjoy life. Thanks again.

    • @Edspira
      @Edspira  6 ปีที่แล้ว

      I'm glad this video helped you. Thanks for sharing!

  • @ajee8894
    @ajee8894 2 ปีที่แล้ว

    I am sooooo grateful to have found this channel! I literally was struggling for pass 2 months in my class even though i read the text book and my teacher suck!!!! Thank you soooooooo much! i finally understand everything!!!!!

  • @danielles.3509
    @danielles.3509 6 ปีที่แล้ว +2

    Yay another class down. Onto Principals of Finance! I have to come back again and thank the teacher. Thank youuuu! Thank You!

    • @Edspira
      @Edspira  6 ปีที่แล้ว

      Congrats! Thanks for watching :)

  • @byekkam
    @byekkam 7 ปีที่แล้ว +3

    saved my life right before my final!! thank u so much. This video is very well explained and very helpful!!

    • @Edspira
      @Edspira  7 ปีที่แล้ว

      Excellent! Glad you did well on your final!!

  • @poppysinclair
    @poppysinclair 4 ปีที่แล้ว +2

    if my lectures were taught like this life would be so much easier

    • @Edspira
      @Edspira  4 ปีที่แล้ว +2

      Appreciate the kind words!

  • @iamnottweezy
    @iamnottweezy 2 ปีที่แล้ว

    i spent all day in school confused about this and now i understand finally

  • @ariah5093
    @ariah5093 2 ปีที่แล้ว +2

    This man is a saint

    • @Edspira
      @Edspira  2 ปีที่แล้ว

      😀

  • @louiexx
    @louiexx 6 ปีที่แล้ว

    Watching November 2018 and this just made a lot of things a whole lot easier... Thank You.

  • @adreto2978
    @adreto2978 3 ปีที่แล้ว

    Legend! Textbooks always overcomplicate stuff like this

  • @MiriamNork
    @MiriamNork หลายเดือนก่อน

    Dear Sir, thank you for this presentation. I have a question: In the Contribution Margin Income Statement, are all variable operating expenses also included in the variable costs? Also, are all fixed operating costs included in the fixed costs? Please respond.
    Thank you
    Miriam Nork from Papua New Guinea

  • @khalilfuller4939
    @khalilfuller4939 7 หลายเดือนก่อน

    I understand the concept between I/S & Contribution I/S. My question is, are the words interchangeable or should companies worry about covering 30,000 (I/S) & 30,000 (C.I/S) to = $70,000 ?

  • @eddie7031
    @eddie7031 2 ปีที่แล้ว +1

    How did you get variable cost of $30,000 in your Contribution I/S ?

  • @moisesgoncalves3019
    @moisesgoncalves3019 2 ปีที่แล้ว

    You explained like they're the same thing, like there are no difference at all when reaching the NI.Is that the case?

  • @kathleengalvan2354
    @kathleengalvan2354 5 ปีที่แล้ว

    Thank you! This is a big help for my report later. I've learned a lot by the way. Not just in this video but all lessons related to Cost-Volume-Profit Analysis. Thanks again!

  • @drasserngolo3057
    @drasserngolo3057 2 ปีที่แล้ว +1

    How did you come up with the 30 000 for VC

  • @SonogniniScience
    @SonogniniScience 5 ปีที่แล้ว

    Hi. This video is great! Can you please turn on the auto CC so that the hearing impaired can learn from this video too? Thanks!

  • @sashajacobs1037
    @sashajacobs1037 8 ปีที่แล้ว +3

    Very useful and well explain

  • @angelaxlee
    @angelaxlee 5 ปีที่แล้ว

    Thank you for making this so clear to me

  • @ridsanand7108
    @ridsanand7108 5 ปีที่แล้ว

    Thx for your videos!small query... VC includes all the variable expenses(prod. & Non prod.) or just the variable production expense for calculating contribution margin ..thx!

  • @samaysoni4015
    @samaysoni4015 5 ปีที่แล้ว

    Beautiful video, thank you for this

  • @haphewchus5933
    @haphewchus5933 4 ปีที่แล้ว

    Hopefully you reply here is my question
    This is the cm in units right?
    What if I want to get cm % how do we do that , I'm still in highschool and don't have accounting as of yet but learning from now on so I can flourish my finances , im stuck on this since the morning your help would be appreciated

  • @TmnthpLeogirl
    @TmnthpLeogirl 6 ปีที่แล้ว +1

    Is finding contribution margin per unit different because doing homework for my accounting class and not sure if I did it right

    • @Edspira
      @Edspira  6 ปีที่แล้ว +1

      You would find the contribution margin then divide by the number of units to get the contribution margin per unit.

  • @damounkaoutar538
    @damounkaoutar538 3 ปีที่แล้ว

    thank you

  • @classiccatastrophe1518
    @classiccatastrophe1518 3 ปีที่แล้ว

    Sir I have a doubt when calculating contribution margin do we have to add non production variable cost like selling and admin costs when calculating variable cost per unit

  • @raquelm.w.7974
    @raquelm.w.7974 5 ปีที่แล้ว

    Very helpful. Thank you!

  • @JamesTitor
    @JamesTitor 4 หลายเดือนก่อน

    thank you again

    • @Edspira
      @Edspira  4 หลายเดือนก่อน

      Happy to help! Best wishes my friend!

  • @adamjijo8961
    @adamjijo8961 2 ปีที่แล้ว +1

    Thank you mahn

  • @TmnthpLeogirl
    @TmnthpLeogirl 6 ปีที่แล้ว

    so is the parts in the beginning could the variable cost also be variable expenses or are they different?

    • @Edspira
      @Edspira  6 ปีที่แล้ว +1

      Variable costs means the same thing as variable expenses. They are synonymous. Good question!

  • @danielles.3509
    @danielles.3509 6 ปีที่แล้ว +1

    Sorry I am lost on this and happened to get this same question incorrect on my test. I have seen the videos just not clicking. Sales - variable cost. Having the hardest time knowing where the 30k came from

    • @Edspira
      @Edspira  6 ปีที่แล้ว

      Both the sales of $100,000 and variable costs of $30,000 were given information in the example. There is no calculation behind the 30,000. Best of luck with your studies!

    • @danielles.3509
      @danielles.3509 6 ปีที่แล้ว

      Edspira oh hahhaha now wonder:) thank you!!!

  • @hriddhanabiprassad9833
    @hriddhanabiprassad9833 4 ปีที่แล้ว

    Thank you so much!!

  • @mohamedaisset9534
    @mohamedaisset9534 7 ปีที่แล้ว

    What’s the difference between COGS and VC (variable costs)?

    • @Edspira
      @Edspira  7 ปีที่แล้ว +1

      I actually have a video on each of these topics. Variable costs: edspira.com/topic/variable-costs COGS: edspira.com/topic/cost-goods-sold-manufacturing-firm Thanks for watching!

  • @dumaoctavian8523
    @dumaoctavian8523 3 ปีที่แล้ว

    what class is this one?

  • @Zohirul-Jewel
    @Zohirul-Jewel 7 ปีที่แล้ว

    VC=variable cost=cost of making the product

  • @ЮличДемидова
    @ЮличДемидова 2 ปีที่แล้ว

    how do you do that?

  • @tungnguyenthach6384
    @tungnguyenthach6384 2 ปีที่แล้ว

    the video image is too poor, you need to fix it more

  • @laurieshanderson
    @laurieshanderson 5 ปีที่แล้ว

    Perfect!

  • @hyonguyen9283
    @hyonguyen9283 4 ปีที่แล้ว

    Thank you for keep enlightening my whole accounting and finance life ❤️
    If you can please support us on some certificate education (cia, acca,...)
    Much much appreciate ❤️

  • @alfietorres
    @alfietorres 5 ปีที่แล้ว

    Lifesaver

  • @gsnctb3532
    @gsnctb3532 7 ปีที่แล้ว

    رائع

  • @ترفيهوبس-ل8ل
    @ترفيهوبس-ل8ل 6 ปีที่แล้ว

    😃

  • @TamNguyen-hg3ii
    @TamNguyen-hg3ii 3 ปีที่แล้ว

    the sound is not good I am quite disappointed

  • @DaisyGeekyTransGirl
    @DaisyGeekyTransGirl 7 ปีที่แล้ว +1

    Do you have anything on the Weighted Average Contribution Margin?

    • @Edspira
      @Edspira  7 ปีที่แล้ว +1

      Unfortunately not- I'll put that on my to-do list!

  • @raizmini7121
    @raizmini7121 3 ปีที่แล้ว

    the sound is not good I am quite disappointed