📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Which among the following profitability level is the

    profit from which the fixed costs are to be recovered first to arrive at the profit?
    A Gross Profit Correct Answer Incorrect Answer
    B Net Profit Correct Answer Incorrect Answer
    C Operating Profit Correct Answer Incorrect Answer
    D EBITDA Correct Answer Incorrect Answer
    E Contribution Correct Answer Incorrect Answer

    Solution

    Contribution is the profit level under Marginal Costing which contributes first towards recovery of fixed costs and later, leads to the generation of profits.

    Practice Next
    More Cost of Capital and Business Valuations Questions
    ask-question