Sales revenue minus total variable expenses incurred to earn that sales revenue. Variable expenses can include both variable manufacturing and sales expenses.

The unit of profit that is earned for each sale of unit. Contribution margin is equal to selling price minus variable manufacturing costs and variable selling costs. This margin can be calculated on a per unit basis or can be expressed as a percentage of the unit price.

Costs that are indirectly related to manufacturing or providing services. Costs can be fixed or variable. Costs can be classified as indirect factory overhead, or selling, general and administrative costs.

Costs that are directly related to manufacturing or providing services. Costs can be fixed or variable.

The sales (or volume of sales) when total revenues exceed total expenses. Break-even sales represent the minimum revenue (or sales units) a company is required to earn to ensure that it makes no losses. The break-even point analysis is calculated by dividing fixed costs by the contribution per unit (to determine break-even sales units) or [...]

Costs that change as production or sales volumes change. Variable costs include variable manufacturing costs and variable selling costs.

Costs that remain unchanged if production or sales volumes change.

Costs incurred to execute selling, general and administrative functions and other general costs that are not directly related to the manufacturing of products or provision of services. Selling, general and administrative overhead costs have to be paid even if there were no sales. Examples of overhead costs include office and management salaries, insurance, office supplies, [...]

Costs incurred to manufacture products but which are not directly related to the manufacturing of products or provision of services. These costs are included in the calculation of Cost of Goods Sold. Examples of overhead costs include rent, utilities, insurance, repair and maintenance, small tools, consumable supplies, etc. Some factory overhead costs will not change [...]

Costs that are not directly related to the manufacturing of products or provision of services. Example of overhead costs include rent, utilities, insurance, administrative and management salaries, office supplies, etc.