contribution


contribution
1) The amount that, under marginal costing principles, a given transaction produces to cover fixed overheads and to provide profit. The unit contribution is normally taken to be the selling price of a given unit of merchandise, less the variable costs of producing it. Once the total contributions exceed the fixed overheads, all further contribution represents pure profit. The total contribution is the product of the unit contribution and the number of units produced. This is based on the assumptions that the marginal cost and the sales value will be constant.
2) The sharing of claim payments between two or more insurers who find themselves insuring the same item, against the same risks, for the same person. As that person is not entitled to claim more than the full value of the item once, each insurer pays a share. For example, if a coat was stolen from a car, it might be insured under both a personal-effects insurance and a motor policy. As the policyholder is only entitled to the value of the coat (and cannot profit from the theft), each insurer contributes half of the loss.

Big dictionary of business and management. 2014.

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  • contribution — [ kɔ̃tribysjɔ̃ ] n. f. • 1317; lat. contributio 1 ♦ Part que chacun donne pour une charge, une dépense commune. ⇒ cotisation, 1. écot, 1. part, quote part, tribut. Il a donné telle somme pour sa contribution, en contribution, comme contribution.… …   Encyclopédie Universelle

  • contribution — con·tri·bu·tion n 1: payment of a share of an amount for which one is liable: as a: shared payment of a judgment by joint tortfeasors esp. according to proportional fault compare apportion a b: pro rata apportionment of loss among all the… …   Law dictionary

  • contribution — CONTRIBUTION. s. fém. Levée extraordinaire faite par autorité publique. Les Villages ont payé tant par contribution, par forme de contribution. [b]f♛/b] Il se dit aussi De ce qui se paye en temps de guerre par ordre du Général en pays ennemi.… …   Dictionnaire de l'Académie Française 1798

  • contribution — Contribution. s. f. v. Levée extraordinaire faite par authorité publique. Les villages ont payé tant par contribution, par forme de contribution. Il se dit aussi, De ce que l on paye aux ennemis pour se garentir du pillage, pour se redimer des… …   Dictionnaire de l'Académie française

  • contribution — margin The additional profit that will be earned by an organization when the breakeven point production has been exceeded. The unit contribution is the difference between the unit selling price of a product and its marginal cost of production.… …   Accounting dictionary

  • Contribution — Con tri*bu tion, n. [L. contributio: cf. F. contribution.] 1. The act of contributing. [1913 Webster] 2. That which is contributed; either the portion which an individual furnishes to the common stock, or the whole which is formed by the gifts of …   The Collaborative International Dictionary of English

  • contribution — late 14c., from O.Fr. contribution and directly from L. contributionem (nom. contributio), from contribut , pp. stem of contribuere to bring together, add, contribute, from com together (see COM (Cf. com )) + tribuere to allot, pay (see TRIBUTE… …   Etymology dictionary

  • contribution — [kän΄trə byo͞o′shən] n. [ME contribucioun < OFr contribution < L contributio] 1. the act of contributing 2. something contributed, as money to a charity or a poem to a magazine 3. a) a special levy or tax b) Archaic a levy for supporting an …   English World dictionary

  • contribution — *donation, benefaction, alms Analogous words: grant, subvention, subsidy, *appropriation: *gift, present, largess, boon …   New Dictionary of Synonyms

  • contribution — [n] gift, offering addition, a hand, alms, augmentation, benefaction, beneficence, bestowal, charity, donation, do one’s part*, gifting, grant, handout, helping hand, improvement, increase, input, present, significant addition, subscription,… …   New thesaurus

  • contribution — Contribution, Contributio …   Thresor de la langue françoyse