CONTRIBUTION MARGIN ANALYSIS Definition

Bookmark and Share

CONTRIBUTION MARGIN ANALYSIS is a technique used in brand marketing and product management to help a company decide what product(s) to add to its product portfolio. The manager asks what will happen to profits if a new product is added or an existing product is discontinued. Calculations take into account additional revenues, additional costs, effects on other products in the portfolio (referred to as cannibalization), and competitors reactions.

Learn new Accounting Terms

TAX PAYABLE METHOD is where the tax expense is equal to the provision for taxes payable in a particular period and deferred income tax is not recognized.

MID-CAP is a stock with a capitalization, total equity value, between $500 million and $5 billion.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.