Throughput contribution equals
A)sales revenue less direct materials cost.
B)sales revenue less product costs.
C)direct material plus direct labor.
D)direct material plus traceable manufacturing overhead.

Question

Quizplus · Accepted Answer

Throughput contribution is calculated as sales revenue less direct materials cost. This measure is used in throughput accounting to assess the profitability of products by only deducting the variable costs directly associated with the production of goods, which in this context is the direct materials cost.

Throughput Contribution Equals