Gross margin and contribution margin are always equal.

Name: Gross margin and contribution margin are always equal.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Gross margin and contribution margin are two different financial metrics. Gross margin is the difference between revenue and cost of goods sold, while contribution margin is the difference between revenue and variable costs. It is possible for the two margins to be equal, but it is not always the case as it depends on the cost structure of the business.

Gross Margin and Contribution Margin Are Always Equal