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The DSM-IV is widely believed to be useful because it:
Contribution Margin
The amount of revenue remaining after deducting variable costs, which can be used to cover fixed costs and contribute to profit.
Fixed Costs
Expenses that do not change with the level of output or sales over a short period, such as rent, salaries, and insurance.
Variable Costing
An accounting method that only assigns variable costs to inventory, with fixed manufacturing overhead expenses charged to expense as incurred.
Variable Costing
An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.
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