Examlex
Contribution Margin Ratio
The proportion of sales revenue that exceeds variable costs, typically expressed as a percentage, indicating how much contributes to covering fixed costs and generating profits.
Fixed Expenses
Costs that do not vary with the level of production or sales over a short period, such as rent, salaries, and insurance.
Break-Even
The point at which total costs and total revenues are equal, meaning there is no net loss or gain.
Absorption Costing
A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.
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