Multidimensional contribution accounting

IGC-DEFINITION (abbreviated)

Multidimensional contribution accounting
Since the market is usually approached through different channels and, additionally not only the products dimension is essential for strategic planning, there is now an increasing need for a multidimensional presentation of a company’s contribution margins. It is therefore necessary to be able to create multiple contribution accounts based on a business’s work practices, procedures and philosophies. These accounts should be structured according to the relevant business dimensions such as sales areas, regions, distribution channels, fields of application, customers’ needs or strategic business units (SBU’s). Such multidimensional contribution accounts are devised according to the principle that only those structure costs are deducted in steps from the CM I, which are unequivocally assignable (by voucher) to the object in question.

from: IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)

Source

IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010

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