Contribution Approach Definition:

Contribution approach is an income statement format that is geared to cost behavior in that costs are separated into variable and fixed categories rather than being separated according to the functions of production, sales, and administration.

Other Related Accounting Articles:

• Contribution Margin Definition
• Cost Volume Profit (CVP) Formulas
• Break Even Price
• Account Analysis Definition
• Profit Velocity Analysis
• High-Low Method
• Contribution Margin (CM) Ratio Definition
• Relevant Range Definition
• Engineering Approach Definition
• Organizational Behavior Definition