This was a great explanation I'm prepping for case interviews and was going down rabbit holes confusing myself on this one. I love how. you went into an equal amount of detail for both definitions and left nothing to assumption!
Classes just started today, and this isn't exactly where I am at area wise (If you feel like doing a video on bonds/long term notes and pensions/benefits, that'd be amazing), its great to see your videos like this just when I believe I'll be needing them. You're a hero, thank you!
@@JustJosephAlright sorry, I'm not too comfortable giving out private info online just randomly on social media, but I do wish you luck with your classes! Managerial accounting was actually pretty fun, I hope you enjoy it! (btw, auditing and cost accounting are probably the most problematic/difficult classes I had)
In some cases, yes, but not always. This is because you deduct variable SG&A costs from contribution margin but don't deduct variable SG&A costs from the gross margin.
This was a great explanation I'm prepping for case interviews and was going down rabbit holes confusing myself on this one. I love how. you went into an equal amount of detail for both definitions and left nothing to assumption!
Thank you for the kind words!
Classes just started today, and this isn't exactly where I am at area wise (If you feel like doing a video on bonds/long term notes and pensions/benefits, that'd be amazing), its great to see your videos like this just when I believe I'll be needing them. You're a hero, thank you!
This is high quality stuff but as a beginner in accounting this was good for me
What class are you taking I'm in Managerial Accounting
@@JustJosephAlright I'm taking intermediate II at the moment and Business Law
@@Ravenleaf182 lucky! Wish I was taking their classes where you from?
@@JustJosephAlright sorry, I'm not too comfortable giving out private info online just randomly on social media, but I do wish you luck with your classes! Managerial accounting was actually pretty fun, I hope you enjoy it! (btw, auditing and cost accounting are probably the most problematic/difficult classes I had)
Contribution margin is about Total variable ( direct & Indirect variable costs)
Gross margin is about Fixed & Variable costs ( but only Direct costs )
Excellent explanation. Thank you
Cost 2,intermidate 2, Fm 2 econometrics,OR
Thank you, professor. Does it mean that contribution margin is usually bigger than gross margin, since it doesn’t deduct fixed MOH?
In some cases, yes, but not always. This is because you deduct variable SG&A costs from contribution margin but don't deduct variable SG&A costs from the gross margin.
@@Edspira got it. Thank you.