When analyzing Cost Accounting data, 'Contribution' is useful for:
A. Make or Buy decisions
B. Calculating Income Tax
C. Determining depreciation
D. Valuing Goodwill
Answer: Option A
Solution (By JKSSB Mock Tests)
Contribution (Sales - Variable Cost) is a key metric in marginal costing used for managerial decisions like 'Make or Buy', dropping a product, or accepting special orders.
No comments yet. Be the first to start the discussion!