GEO 793 Lecture Notes - Operating Leverage, Fixed Cost, Cost Accounting
Document Summary
Revenue direct variable costs = contribution margin. Contribution margin direct fixed costs = gross profit/ margin. Gross profit/ margin indirect fixed costs = operating income (ebit) Ebit interest and taxes = net income (ni) Two key facts about marketing cost management: easier to control and manage the supply side (ex: costs and resources) than it is to control and manage consumer demand. [consumer demand is influenced by external factors: cost control is an important principle of marketing systems controls and its metrics.