Managers in service firms do not find contribution margin analysis reports useful because their firms do not sell inventory.

Question

Quizplus · Accepted Answer

Contribution margin analysis reports can still be useful for service firms as they can help managers determine the profitability of each service or service line. Contribution margin analysis can also assist with pricing decisions and identifying areas where costs can be reduced to increase profitability.

Managers in Service Firms Do Not Find Contribution Margin Analysis