Controllable Margin

What is the Controllable Margin?

The controllable margin is the contribution margin less the controllable fixed costs. As all the costs included are controllable by the profit center manager, it is a useful measure to evaluate the managers performance.

The controllable margin is used when producing a Contribution Margin Income Statement to monitor and measure the contribution made by a profit center.

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Controllable Margin June 5th, 2014Team

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