Contribution represents the profit generated after deducting all variable costs, including advertising spend, from revenue. It measures the incremental profitability of sales activity and indicates how much profit remains to cover fixed costs and generate net income. Contribution is a management accounting metric rather than a statutory reporting measure under IFRS or GAAP.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article