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Absorbed Cost

A cost that is actually borne by a business rather than passed on to its customers. Therefore, it is typically...

Profit-Volume Ratio

An accounting ratio that expresses the contribution margin as a percentage by relating it to total sales (revenues) in dollar...

Contribution Margin Ratio

An accounting ratio that expresses the contribution margin as a percentage by relating it to total sales (revenues) in dollar...

Contribution Margin

The amount by which revenues of an entity exceed variable costs (including those relating to production, selling, and administration). This...