Contribution analysis - Revision history

Doug: Improve linking.

2025-02-15T01:03:36Z

Improve linking.

← Older revision		Revision as of 01:03, 15 February 2025
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	* [[Break even point]]		* [[Break even point]]
	* [[Contribution]]		* [[Contribution]]
			* [[Contribution margin]]
			* [[Contribution rate]]
			* [[Contributions]]
	* [[Fixed cost]]		* [[Fixed cost]]
	* [[Limiting factor]]		* [[Limiting factor]]

imported>Doug Williamson: Punctuation.

2019-03-27T09:17:22Z

Punctuation.

← Older revision		Revision as of 09:17, 27 March 2019
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	The key insight from contribution analysis is that sunk costs (already committed costs) are not relevant for short term decision making:		The key insight from contribution analysis is that sunk costs (already committed costs) are not relevant for short term decision making:

	"Sunk costs don't count."		"Sunk costs don't count".

imported>Doug Williamson: Layout.

2019-03-20T08:30:29Z

Layout.

← Older revision		Revision as of 08:30, 20 March 2019
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	The key insight from contribution analysis is that sunk costs (already committed costs) are not relevant for short term decision making:		The key insight from contribution analysis is that sunk costs (already committed costs) are not relevant for short term decision making:

	'Sunk costs don't count.'		"Sunk costs don't count."

imported>Doug Williamson: Mend link.

2019-03-20T08:29:23Z

Mend link.

← Older revision		Revision as of 08:29, 20 March 2019
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	* [[Management accounting]]		* [[Management accounting]]
	* [[Margin of safety]]		* [[Margin of safety]]
	* [[Sunk ~~cost~~]]		* [[Sunk costs]]
	* [[Variable cost]]		* [[Variable cost]]

	[[Category:Accounting,_tax_and_regulation]]		[[Category:Accounting,_tax_and_regulation]]

imported>Doug Williamson: Create page. Sources: linked pages.

2019-03-20T08:28:57Z

Create page. Sources: linked pages.

New page

''Cost and management accounting.''

In cost and management accounting, contribution is Revenue less incremental variable costs.

Contribution analysis seeks to identify contribution per unit of production and total contribution.

When total contribution is maximised, profit will be maximised.

The key insight from contribution analysis is that sunk costs (already committed costs) are not relevant for short term decision making:

'Sunk costs don't count.'

== See also ==
* [[Break even point]]
* [[Contribution]]
* [[Fixed cost]]
* [[Limiting factor]]
* [[Management accounting]]
* [[Margin of safety]]
* [[Sunk cost]]
* [[Variable cost]]

[[Category:Accounting,_tax_and_regulation]]