SOLUTION: DMACC Accounting Contribution Margin Question

Please view explanation and answer below.Running head: ACCOUNTING QUESTIONAccounting Question: Contribution Margin, Estimating, & TestingStudent’s NameInstitutional Affiliation1ACCOUNTING QUESTION2Accounting Question: Contribution Margin, Estimating, & TestingPart 1: Contribution Margin•Is contribution margin part of financial accounting or managerial accounting, orboth?In both financial and managerial accounting, the contribution margin is an importantmetric. Profits of particular products is determined by the contribution margin in financialaccounting. As a specific example, contribution margins are used to evaluate the variableexpenses contained in the manufacturing cost of a product sold (Marshall et al. 2020).When it comes to accounting, contribution margin is defined as a product’s selling priceminus all of its related variable costs, culminating in the incremental revenue made forevery unit sold. Earnings that can be used to cover fixed costs and generate a profit arereferred to as “contribution margin.”•What kinds of costs, such as packaging, might be easy to forget when calculatingproduction costs and con…

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