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Financial Terms | |
product contribution margin |
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Definition of product contribution marginproduct contribution marginthe difference between selling price and variable cost of goods sold
Related Terms:After-tax profit marginThe ratio of net income to net sales. Aggregate Production FunctionAn equation determining aggregate output as a function of aggregate inputs such as labor and capital. Before-tax profit marginThe ratio of net income before taxes to net sales. Buy on marginA transaction in which an investor borrows to buy additional shares, using the shares by-productan incidental output of a joint process; it is salable, By-productA product that is an ancillary part of the primary production process, having By-productA material created incidental to a production process, which can be ![]() ContributionAlso the difference between the selling price and variable costs, which can be expressed either per Contribution marginThe difference between variable revenue and variable cost. contribution marginAn intermediate measure of profit equal to sales revenue contribution marginthe difference between selling price and Contribution marginThe margin that results when variable production costs are subtracted contribution margin ratiothe proportion of each revenue dollar remaining after variable costs have been covered; Contribution PrincipleThis is the principle which specifies the factors that must be taken into account when calculating dividends. At Canada Life, the key factors are: interest earnings, mortality, and operating expense. Contribution RateThe percentage tax charged by a state to an employer to cost of production reporta process costing document that Defined contribution planA pension plan in which the sponsor is responsible only for making specified Defined Contribution PlanA qualified retirement plan under which the employer Dollar safety marginThe dollar equivalent of the safety cushion for a portfolio in a contingent immunization EBITDA MarginEBITDA divided by total sales or total revenue. economic production run (EPR)an estimate of the number Effective margin (EM)Used with SAT performance measures, the amount equaling the net earned spread, or Equity contribution agreementAn agreement to contribute equity to a project under certain specified equivalent units of production (EUP)an approximation of the number of whole units of output that could have been Factor of ProductionA resource used to produce a good or service. The main macroeconomic factors of production are capital and labor. Federal Insurance Contributions Act of 1935 (FICA)A federal Act authorizing the government to collect Social Security and Medicare payroll taxes. grade (of product or service)the addition or removal of product Gross Domestic ProductTotal output of final goods and services produced within a country during a year. Gross domestic product (GDP)The market value of goods and services produced over time including the Gross marginRevenues less the cost of goods sold. gross margin, or gross profitThis first-line measure of profit Gross National ProductTotal output of final goods and services produced by a country's citizens during a year. Gross national product (GNP)Measures and economy's total income. It is equal to GDP plus the income Gross profit marginGross profit divided by sales, which is equal to each sales dollar left over after paying Gross Profit MarginGross profit divided by revenue. Initial margin requirementWhen buying securities on margin, the proportion of the total market value of Investment product line (IPML)The line of required returns for investment projects as a function of beta Joint productA product that has the highest sales value from among a group of products Lean productionThe technique of stripping all non-value-added activities from Maintenance margin requirementA sum, usually smaller than -but part of the original margin, which must MarginThis allows investors to buy securities by borrowing money from a broker. The margin is the MarginThe amount added to a lower figure to reach a higher figure, expressed as a percentage of the higher figure, e.g. the margin that profit represents as a percentage of selling price. Margin account (Stocks)A leverageable account in which stocks can be purchased for a combination of Margin callA demand for additional funds because of adverse price movement. Maintenance margin Margin of safetyA measure of the difference between the anticipated and breakeven levels of activity. margin of safetythe excess of the budgeted or actual sales Margin requirement (Options)The amount of cash an uncovered (naked) option writer is required to Margin Tax RateThe tax rate applicable to the last unit of income. MarginalIncremental. Marginal costThe cost of producing one extra unit. Marginal costThe incremental change in the unit cost of a product as a result of a Marginal Propensity to ConsumeFraction of an increase in disposable income that is spent on consumption. Marginal Propensity to ImportFraction of an increase in disposable income that is spent on imports. Marginal Propensity to SaveFraction of an increase in disposable income that is saved. Marginal tax rateThe tax rate that would have to be paid on any additional dollars of taxable income earned. marginal tax rateAdditional taxes owed per dollar of additional income. Marginal Tax RatePercent of an increase in income paid in tax. National Income and Product AccountsThe national accounting system that records economic activity such as GDP and related measures. Net Domestic ProductGDP minus depreciation. Net National ProductGNP minus depreciation. Net operating marginThe ratio of net operating income to net sales. Net profit marginNet income divided by sales; the amount of each sales dollar left over after all expenses Non-production overheadA general term referring to period costs, such as selling, administration and financial expenses. Operating profit marginThe ratio of operating margin to net sales. Original marginThe margin needed to cover a specific new position. Related: margin, security deposit (initial) Process flow productionA production configuration in which products are continually process productivitythe total units produced during a period ProductAny item intended for sale. product complexityan assessment about the number of components in a product Product costThe cost of goods or services produced. product costThis is a key factor in the profit model of a business. product product costa cost associated with making or acquiring inventory Product costThe total of all costs assigned to a product, typically including direct Product cycleThe time it takes to bring new and/or improved products to market. product life cyclea model depicting the stages through product line marginsee segment margin Product marketA business’s investment in technology, people and materials in order to make, buy and sell products or services to customers. product- (or process-) level costa cost that is caused by the development, production, or acquisition of specific products or services Product riskA type of mortgage-pipeline risk that occurs when a lender has an unusual loan in production or Product/service mixSee sales mix. product varietythe number of different types of products Production-flow commitmentAn agreement by the loan purchaser to allow the monthly loan quota to be Production overheadA general term referring to indirect costs. Production payment financingA method of nonrecourse asset-based financing in which a specified Production yield varianceThe difference between the actual and budgeted proportions productive capacitythe number of total units that could be ProductivityOutput per unit of input, usually measured as output per hour of labor. Profit marginIndicator of profitability. The ratio of earnings available to stockholders to net sales. profit marginthe ratio of income to sales Profit Margin RatioA measure of how much profit is earned on each dollar of sales. It Sales Revenue Revenue recognized from the sales of products as opposed to the provision ofservices. segment marginthe excess of revenues over direct variable expenses and avoidable fixed expenses for a particular segment Self-Employment Contributions Act (SECA)A federal Act requiring self-employed business owners to pay the same total tax rates for Social Security and Throughput contributionSales revenue less the cost of materials. total contribution marginsee contribution margin unit marginThe profit per unit sold of a product after deducting product UNITS OF PRODUCTIONA depreciation method that relates a machine’s depreciation to the number of units it makes each Variation marginAn additional required deposit to bring an investor's equity account up to the initial margin profit moduleThis concept refers to a separate source of revenue and Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |