### Contribution Margin Income Statement

What is Contribution Margin Income Statement? Definition: A contribution margin income statement deducts variable costs from revenues to arrive at the contribution that is available to pay for fixed costs. After fixed costs are deducted from the contribution margin, the remaining amount, if any, is the profit. What does contribution Margin...

### Conversion Cost

What is Conversion Cost? Definition: Conversion costs are the costs incurred for turning raw materials into finished products. If you add direct labor costs and manufacturing costs, the sum that you get will be the conversion cost. In other words, conversion costs equal the cost of production minus raw material cost....

### Cost Function Formula

What is Cost Function Formula? Definition: The cost function formula allows a company to calculate its total cost of production. It takes into account both fixed costs and variable costs. Using the cost function formula, a manufacturing firm can work out the cost of production at different levels of output or...

### Cost of Goods Available for Sale

What is Cost of Goods Available for Sale? Definition: The cost of goods available for sale tells you the cost of the finished goods that a company can sell to its customers. This sum includes the cost of inventory at the beginning of the period under consideration as well as the...

### Cumulative Preferred Stock

What is Cumulative Preferred Stock Definition: Cumulative preferred stock is a form of equity issued by a company. Holders of this class of stock are entitled to receive a dividend before a payout is made to common shareholders. If a company does not declare any dividend in a year, cumulative preferred...

### CVP Graph

What is a CVP Graph? Definition: The cost volume profit graph, which is abbreviated as the CVP graph, illustrates the relationship between the costs of production and sales. What does CVP Graph mean? The purpose of making a CVP graph is to help a company determine the impact that a change...

### Deferral

What is a Deferral? Definition: A deferral is an accounting term that refers to the postponement of the recognition of an expense or revenues. There are times when a company may make a payment in advance, but receive the corresponding benefit only at a later date. Similarly, a customer may make...

### Deferred Expense

What is a Deferred Expense? Definition: A business organization often makes advance payments for good and services. This type of payment is recorded as a deferred expense. It is a cost that has been incurred for a good or a service that has not yet been consumed. What does Deferred Expense...

### Deferred Payment

What is a Deferred Payment? Definition: A deferred payment involves paying for a good or a service at a future point in time. A seller may provide this facility to a buyer to promote sales.There could be a situation where the purchaser cannot pay immediately. If deferred payment is permitted, the...