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


FILENAME EXTENSION is a suffix to the name of a computer file applied to indicate the encoding convention (file format) of its contents, e.g. example.xls, to where the .xls indicates a Microsoft Excel file.

DERIVATIVE is a transaction or contract whose value depends on or, as the name implies, derives from the value of underlying assets such as stock, bonds, mortgages, market indices, or foreign currencies. One party with exposure to unwanted risk can pass some or all of the risk to a second party. The first party can assume a different risk from a second party, pay the second party to assume the risk, or, as is often the case, create a combination. Derivatives are normally used to control exposure or risk. See DERIVATIVE CONTRACT.

Suggest a Term

Enter Search Term

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