•  difference in how costs of good sold and gross margin/profit are calculated under financial accounting vs. how contribution margin is calculated under managerial accounting (i.e., what costs are included in the calculation of each). You simply need to be more specific in discussing what is considered PRODUCTION costs by financial vs. managerial accounting.

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Production Costs in Financial vs Managerial Accounting Impact on Cost of Goods Sold COGS Gross Margin and Contribution Margin Financial and managerial ... View the full answer