The amount of earnings remaining after all direct costs have been subtracted from revenue.
1 An example of a contribution is when you donate $10 to charity. 2  An example of a contribution is when you come up with a great idea that helps to create a cool finished product. Use contribution in a sentence. LINK / CITE ADD TO WORD LIST. noun. The definition of a contribution is something that you give or something that you do that helps in achieving an end result. 1  An example of a contribution is when you donate $10 to charity. The contribution concept is usually referred to as contribution margin, which is the residual amount divided by revenues. It is easier to evaluate contribution on a percentage basis, to see if there are changes in the proportion of contribution to revenues over time. For example, if a business has revenues of $1,000 and direct costs of $800, then it has a residual amount of $200 that can be contributed to the payment of fixed costs. This $200 amount is the contribution arising from operations. 4. contribution-an amount of money contributed; he expected his contribution to be repaid with interest. amount, amount of money, sum, sum of money-a quantity of money; he borrowed a large sum; the amount he had in cash was insufficient. contribution. n. 1. the act of contributing. 2. something contributed, such as money or ideas. 3. (Journalism & Publishing) an article, story, etc, contributed to a newspaper or other publication Income tax is due on the contribution in the tax year for which the contribution is made. A contribution to a retirement plan where the amount is taxable. For example, if one makes $2,000 in nondeductible contributions, one must still pay taxes on that $2,000 even though it was placed in a retirement plan. Nonqualifying plans usually have nondeductible contributions.  contribution. (1) An appraisal principle that says the value of an improvement is the amount it adds to the value of the property as a whole,not the value of the improvement standing alone in a void.  Contribution is the amount of earnings remaining after all direct costs have been subtracted from revenue. This remainder is the amount available to pay for any fixed costs that a business incurs during a reporting period. Any excess of contribution over fixed costs equals the profit earned. For example, if a business has revenues of $1,000 and direct costs of $800, then it has a residual amount of $200 that can be contributed to the payment of fixed costs. This $200 amount is the contribution arising from operations. Definition of CONTRIBUTION. 1. : a payment (as a levy or tax) imposed by military, civil, or ecclesiastical authorities usually for a special or extraordinary purpose. 2. : the act of contributing; also: the thing contributed. — con·trib·u·tive \kən-ˈtri-byə-tiv\ adjective. Examples of CONTRIBUTION. 1  They thanked him for his contribution of time and money. 2  He made an important contribution to the debate. 3  As mayor, he made many positive contributions to the growth of the city. 1. Payment to an annuity or retirement plan. 2. Mortgage: A term that can have several meanings in the context of insurance. A contribution can be the portion of a loss paid by each insurer, when the same loss is covered by two or more insurers. Or the term can mean the portion of a premium paid by the insured. The term can also mean the portion of the loss paid by the insurer under coinsurance
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what is contribution contribution