Contribution Pricing

Knowledge Center

   

Description of Contribution Pricing. Explanation.

Contents

Premium

 

Definition Contribution Pricing. Description.


Contribution Pricing is a form of cost-plus pricing which involves separating the different products that make up the product portfolio and allocating to them the direct costs associated with their production. The price is determined at a level which will generate revenues in excess of these costs, thereby contributing towards meeting business overheads. Individual products can be analyzed in terms of their ability to cover their direct costs and contribute to overheads.


It is a methodology where the price charged is based on the variable costs of production. A price is set that is greater than the variable costs, so that a contribution is made towards recovering the fixed costs. "Contribution" here means the difference between the price charged and the variable costs involved in producing a good.


Contribution Pricing Special Interest Group


Special Interest Group (4 members)


Contribution Pricing Forum  

Recent topics

  Costing Strategy for Volatile Mustard Oil
Need strategy for pricing of volatile mustard oil as it's a commodity market......
     
 
  What's the Meaning of Contribution Pricing in Bonds?
Contribution Pricing in bonds?...
     
 

Best Practices - Contribution Pricing

Expert Tips - Contribution Pricing



Advance yourself in business administration and management



Resources - Contribution Pricing
 

News about Contribution Pricing


     
 

Videos about Contribution Pricing


     
 

Presentations about Contribution Pricing


     
 

Books about Contribution Pricing


     
 

More about Contribution Pricing


     



Accelerate your management career



Compare also: Variable Costing

Special Interest Group Leader

 
 

Return to Management Hub: Finance & Investing  |  Marketing  |  Supply Chain & Quality


More on Management  |  Return to Management Dictionary  | 

 

This ends our Contribution Pricing summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V15.0 - Last updated: 15-11-2018. All names of their owners.