CONTRIBUTION MARGIN Definition

Bookmark and Share

CONTRIBUTION MARGIN (CM) is the difference between sales and the variable costs of the product or service, also called marginal income. It is the amount of money available to cover fixed costs and generate profits.

Learn new Accounting Terms

SETTLEMENT DISCOUNT is the discount percentage offered for payment within the settlement period. Many vendors offer settlement discounts for early payment of invoiced amounts.

IRC is Internal Revenue Code of 1986 (formerly 1954).

Suggest a Term

Enter Search Term

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