Contribution Pricing

Knowledge Center

Description of Contribution Pricing. Explanation.


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.

Special Interest Group - Contribution Pricing

Special Interest Group (4 members)

Forum - Contribution Pricing  

In this forum you will find recent interesting discussions.

Best Practices - Contribution Pricing

Here you will find the most valuable discussions from the past.

Expert Tips - Contribution Pricing

Here you will find high-quality advice from experts.

Resources - Contribution Pricing

Here you will find powerpoint presentations, micro-learning videos and further information sources.


News about Contribution Pricing


Videos about Contribution Pricing


Presentations about Contribution Pricing


Books about Contribution Pricing


More about Contribution Pricing


Compare also: Variable Costing

Special Interest Group Leader

You here? Sign up for free


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
2019 12manage - The Executive Fast Track. V15.2 - Last updated: 19-11-2019. All names of their owners.