How do controllable margin and contribution margin differ?
A)The amount of the controllable margin is larger than contribution margin.
B)The amount of the contribution margin is usually higher than the controllable margin.
C)They are synonymous terms.
D)Controllable margin is used for profit centres, while contribution margin is used for cost centres.

Question

Quizplus · Accepted Answer

Contribution margin is the sales revenue minus variable costs, while controllable margin is the contribution margin minus controllable fixed costs, making the contribution margin usually higher.

How Do Controllable Margin and Contribution Margin Differ