What is throughput contribution?
A)sales dollars minus direct materials costs.
B)sales dollars minus direct materials and direct labor costs.
C)sales dollars minus direct materials,direct labor,and overhead costs.
D)sales dollars minus actual total direct and indirect costs.

Question

Quizplus · Accepted Answer

Throughput contribution is calculated as sales dollars minus direct materials costs. It focuses on the contribution of a product to covering fixed costs and generating profit, excluding labor and overhead from the calculation.

What Is Throughput Contribution