Gross Margin vs Contribution Margin Formula

แชร์
ฝัง
  • เผยแพร่เมื่อ 18 ธ.ค. 2024

ความคิดเห็น • 17

  • @MamboBrah
    @MamboBrah 2 ปีที่แล้ว +2

    This was a great explanation I'm prepping for case interviews and was going down rabbit holes confusing myself on this one. I love how. you went into an equal amount of detail for both definitions and left nothing to assumption!

    • @Edspira
      @Edspira  2 ปีที่แล้ว

      Thank you for the kind words!

  • @Ravenleaf182
    @Ravenleaf182 2 ปีที่แล้ว +3

    Classes just started today, and this isn't exactly where I am at area wise (If you feel like doing a video on bonds/long term notes and pensions/benefits, that'd be amazing), its great to see your videos like this just when I believe I'll be needing them. You're a hero, thank you!

    • @JustJosephAlright
      @JustJosephAlright 2 ปีที่แล้ว

      This is high quality stuff but as a beginner in accounting this was good for me

    • @JustJosephAlright
      @JustJosephAlright 2 ปีที่แล้ว

      What class are you taking I'm in Managerial Accounting

    • @Ravenleaf182
      @Ravenleaf182 2 ปีที่แล้ว +1

      @@JustJosephAlright I'm taking intermediate II at the moment and Business Law

    • @JustJosephAlright
      @JustJosephAlright 2 ปีที่แล้ว

      @@Ravenleaf182 lucky! Wish I was taking their classes where you from?

    • @Ravenleaf182
      @Ravenleaf182 2 ปีที่แล้ว +1

      @@JustJosephAlright sorry, I'm not too comfortable giving out private info online just randomly on social media, but I do wish you luck with your classes! Managerial accounting was actually pretty fun, I hope you enjoy it! (btw, auditing and cost accounting are probably the most problematic/difficult classes I had)

  • @johnpetercbm
    @johnpetercbm ปีที่แล้ว

    Excellent explanation. Thank you

  • @feixie6993
    @feixie6993 2 ปีที่แล้ว +1

    Thank you, professor. Does it mean that contribution margin is usually bigger than gross margin, since it doesn’t deduct fixed MOH?

    • @Edspira
      @Edspira  2 ปีที่แล้ว +1

      In some cases, yes, but not always. This is because you deduct variable SG&A costs from contribution margin but don't deduct variable SG&A costs from the gross margin.

    • @feixie6993
      @feixie6993 2 ปีที่แล้ว

      @@Edspira got it. Thank you.

  • @Ayhams96
    @Ayhams96 2 ปีที่แล้ว

    Contribution margin is about Total variable ( direct & Indirect variable costs)
    Gross margin is about Fixed & Variable costs ( but only Direct costs )

  • @akeabate6056
    @akeabate6056 2 ปีที่แล้ว

    Cost 2,intermidate 2, Fm 2 econometrics,OR