Contribution Margin

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  • Опубликовано: 14 окт 2024
  • This video explains what the Contribution Margin is in the context of managerial accounting. The formula for calculating a firm's Contribution Margin is provided, and several examples are used to demonstrate how Contribution Margin is calculated and used in actual practice.
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Комментарии • 64

  • @richardh4572
    @richardh4572 Год назад +41

    I received notification this week that I passed my CMA - wouldn't have happened without a whole lot of your videos and practise tests.
    The fact that you provide this and other course material without charge is so amazingly wonderful and inspiring. Thank you.

    • @Edspira
      @Edspira  Год назад +6

      Congratulations on passing the CMA exam, Richard! I am truly honored to have been a part of your educational journey, and I know it must have been a lot of work watching all those videos and doing the exams. I'm so happy for you and hope the achievement is everything you imagined it would be. I hope you find tremendous fulfillment, both personally and professionally! Wishing you the very best my friend 😀

  • @JamesTownsendJian
    @JamesTownsendJian 8 лет назад +59

    This was very well done. My accounting textbook made it vague and difficult to understand. Hence why it's a college textbook or else it'd have been a proper book.
    You cleared up all my questions, along with at least a half an hour of wasted time, in just a few short minutes. Kudos to you, sir. Kudos to you.

  • @zenandezenande3941
    @zenandezenande3941 6 лет назад +7

    this guy deserves a Nobel Prize.He is straight to the point....Thanks for the content

  • @lucienibrahim5893
    @lucienibrahim5893 7 лет назад +25

    dude you make life easier I learn more from you than i do from my instructors thanks!!

  • @kristoferho7288
    @kristoferho7288 6 лет назад +13

    My Accounting ACCT 205 Professor from University of Kansas recommended this video to review for the exams and the final exam $$$$$

  • @saniviersapphire5395
    @saniviersapphire5395 6 лет назад +7

    We discussed this in class for an hour and yet I learned a lot more from this 5 minute video. Thanks sir!

  • @felicia3525
    @felicia3525 6 лет назад +6

    Thank you soooo much! I now understand. It seems as though teachers leave out small important details because they already know it. You saved me at least an hour. Now I get to enjoy life. Thanks again.

    • @Edspira
      @Edspira  6 лет назад

      I'm glad this video helped you. Thanks for sharing!

  • @ajee8894
    @ajee8894 2 года назад

    I am sooooo grateful to have found this channel! I literally was struggling for pass 2 months in my class even though i read the text book and my teacher suck!!!! Thank you soooooooo much! i finally understand everything!!!!!

  • @danielles.3509
    @danielles.3509 6 лет назад +2

    Yay another class down. Onto Principals of Finance! I have to come back again and thank the teacher. Thank youuuu! Thank You!

    • @Edspira
      @Edspira  6 лет назад

      Congrats! Thanks for watching :)

  • @byekkam
    @byekkam 7 лет назад +3

    saved my life right before my final!! thank u so much. This video is very well explained and very helpful!!

    • @Edspira
      @Edspira  7 лет назад

      Excellent! Glad you did well on your final!!

  • @poppysinclair
    @poppysinclair 4 года назад +2

    if my lectures were taught like this life would be so much easier

    • @Edspira
      @Edspira  4 года назад +2

      Appreciate the kind words!

  • @iamnottweezy
    @iamnottweezy 2 года назад

    i spent all day in school confused about this and now i understand finally

  • @ariah5093
    @ariah5093 2 года назад +2

    This man is a saint

  • @louiexx
    @louiexx 6 лет назад

    Watching November 2018 and this just made a lot of things a whole lot easier... Thank You.

  • @adreto2978
    @adreto2978 3 года назад

    Legend! Textbooks always overcomplicate stuff like this

  • @MiriamNork
    @MiriamNork Месяц назад

    Dear Sir, thank you for this presentation. I have a question: In the Contribution Margin Income Statement, are all variable operating expenses also included in the variable costs? Also, are all fixed operating costs included in the fixed costs? Please respond.
    Thank you
    Miriam Nork from Papua New Guinea

  • @khalilfuller4939
    @khalilfuller4939 7 месяцев назад

    I understand the concept between I/S & Contribution I/S. My question is, are the words interchangeable or should companies worry about covering 30,000 (I/S) & 30,000 (C.I/S) to = $70,000 ?

  • @eddie7031
    @eddie7031 2 года назад +1

    How did you get variable cost of $30,000 in your Contribution I/S ?

  • @moisesgoncalves3019
    @moisesgoncalves3019 2 года назад

    You explained like they're the same thing, like there are no difference at all when reaching the NI.Is that the case?

  • @kathleengalvan2354
    @kathleengalvan2354 5 лет назад

    Thank you! This is a big help for my report later. I've learned a lot by the way. Not just in this video but all lessons related to Cost-Volume-Profit Analysis. Thanks again!

  • @drasserngolo3057
    @drasserngolo3057 2 года назад +1

    How did you come up with the 30 000 for VC

  • @SonogniniScience
    @SonogniniScience 5 лет назад

    Hi. This video is great! Can you please turn on the auto CC so that the hearing impaired can learn from this video too? Thanks!

  • @sashajacobs1037
    @sashajacobs1037 8 лет назад +3

    Very useful and well explain

  • @angelaxlee
    @angelaxlee 5 лет назад

    Thank you for making this so clear to me

  • @ridsanand7108
    @ridsanand7108 5 лет назад

    Thx for your videos!small query... VC includes all the variable expenses(prod. & Non prod.) or just the variable production expense for calculating contribution margin ..thx!

  • @samaysoni4015
    @samaysoni4015 5 лет назад

    Beautiful video, thank you for this

  • @haphewchus5933
    @haphewchus5933 4 года назад

    Hopefully you reply here is my question
    This is the cm in units right?
    What if I want to get cm % how do we do that , I'm still in highschool and don't have accounting as of yet but learning from now on so I can flourish my finances , im stuck on this since the morning your help would be appreciated

  • @TmnthpLeogirl
    @TmnthpLeogirl 6 лет назад +1

    Is finding contribution margin per unit different because doing homework for my accounting class and not sure if I did it right

    • @Edspira
      @Edspira  6 лет назад +1

      You would find the contribution margin then divide by the number of units to get the contribution margin per unit.

  • @damounkaoutar538
    @damounkaoutar538 3 года назад

    thank you

  • @classiccatastrophe1518
    @classiccatastrophe1518 3 года назад

    Sir I have a doubt when calculating contribution margin do we have to add non production variable cost like selling and admin costs when calculating variable cost per unit

  • @raquelm.w.7974
    @raquelm.w.7974 5 лет назад

    Very helpful. Thank you!

  • @JamesTitor
    @JamesTitor 4 месяца назад

    thank you again

    • @Edspira
      @Edspira  4 месяца назад

      Happy to help! Best wishes my friend!

  • @adamjijo8961
    @adamjijo8961 2 года назад +1

    Thank you mahn

  • @TmnthpLeogirl
    @TmnthpLeogirl 6 лет назад

    so is the parts in the beginning could the variable cost also be variable expenses or are they different?

    • @Edspira
      @Edspira  6 лет назад +1

      Variable costs means the same thing as variable expenses. They are synonymous. Good question!

  • @danielles.3509
    @danielles.3509 6 лет назад +1

    Sorry I am lost on this and happened to get this same question incorrect on my test. I have seen the videos just not clicking. Sales - variable cost. Having the hardest time knowing where the 30k came from

    • @Edspira
      @Edspira  6 лет назад

      Both the sales of $100,000 and variable costs of $30,000 were given information in the example. There is no calculation behind the 30,000. Best of luck with your studies!

    • @danielles.3509
      @danielles.3509 6 лет назад

      Edspira oh hahhaha now wonder:) thank you!!!

  • @hriddhanabiprassad9833
    @hriddhanabiprassad9833 4 года назад

    Thank you so much!!

  • @mohamedaisset9534
    @mohamedaisset9534 7 лет назад

    What’s the difference between COGS and VC (variable costs)?

    • @Edspira
      @Edspira  7 лет назад +1

      I actually have a video on each of these topics. Variable costs: edspira.com/topic/variable-costs COGS: edspira.com/topic/cost-goods-sold-manufacturing-firm Thanks for watching!

  • @dumaoctavian8523
    @dumaoctavian8523 3 года назад

    what class is this one?

  • @Zohirul-Jewel
    @Zohirul-Jewel 7 лет назад

    VC=variable cost=cost of making the product

  • @ЮличДемидова
    @ЮличДемидова 2 года назад

    how do you do that?

  • @tungnguyenthach6384
    @tungnguyenthach6384 2 года назад

    the video image is too poor, you need to fix it more

  • @laurieshanderson
    @laurieshanderson 5 лет назад

    Perfect!

  • @hyonguyen9283
    @hyonguyen9283 4 года назад

    Thank you for keep enlightening my whole accounting and finance life ❤️
    If you can please support us on some certificate education (cia, acca,...)
    Much much appreciate ❤️

  • @alfietorres
    @alfietorres 5 лет назад

    Lifesaver

  • @gsnctb3532
    @gsnctb3532 7 лет назад

    رائع

  • @ترفيهوبس-ل8ل
    @ترفيهوبس-ل8ل 6 лет назад

    😃

  • @TamNguyen-hg3ii
    @TamNguyen-hg3ii 3 года назад

    the sound is not good I am quite disappointed

  • @DaisyGeekyTransGirl
    @DaisyGeekyTransGirl 7 лет назад +1

    Do you have anything on the Weighted Average Contribution Margin?

    • @Edspira
      @Edspira  7 лет назад +1

      Unfortunately not- I'll put that on my to-do list!

  • @raizmini7121
    @raizmini7121 3 года назад

    the sound is not good I am quite disappointed