Contribution margin is the excess of revenues over:

A) all variable costs.
B) manufacturing cost.
C) all direct costs.
D) cost of goods sold.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes toward covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced.

Cost Of Goods Sold

The total cost directly associated with producing or acquiring the goods sold by a business during a particular period, including materials and labor.