When developing financial performance reports in a decentralized organization, a contribution margin format may be used Explain the advantages of using this format for performance evaluation of units and managers ...

Using the contribution margin format the costs are reported according to their beh ...

When developing financial performance reports in a decentralized organization, a contribution margin format may be used. Explain

Question:

When developing financial performance reports in a decentralized organization, a format may be used. Explain the advantages of using this format for performance evaluation of units and managers?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...