Examlex
What is the purpose of S&OP and what takes place at the strategic, tactical, and detailed planning and control levels?
Contribution Margin
The amount of revenue remaining after variable costs have been deducted, which contributes to covering fixed costs and generating profit.
Opportunity Cost
The expense associated with missing out on the second-best option when a choice is made.
Contribution Margin
The difference between sales revenue and variable costs, indicating how much revenue is available to cover fixed costs and generate profit.
Variable Cost
Costs that change in proportion to the level of activity or volume of production, such as materials and labor.
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