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Home > QFINANCE Dictionary > Definition of margin

Definition of

margin

  • 1.

    gap between cost and selling price the difference between the cost and the selling price of a product or service

  • 2.

    extra pay for employees' special skills a payment made to workers over and above the basic wage in recognition of special skills

margin - Related Articles

  • Marginal Cost

    Calculations

    Marginal cost is based on the economic theory that the more goods are produced, the lower will be the per-unit cost.

  • Contribution Margin

    Calculations

    Finding the contribution margin unearths an important comparison that otherwise would lie hidden in an income statement.

  • Gross Profit Margin Ratio

    Calculations

    The gross profit margin ratio measures how efficiently a company uses its resources, materials, and labor in the production process by showing the percentage of net sales remaining after subtracting the cost of making and selling a product or service. It is usually expressed as a percentage

  • Marginal Rate of Substitution

    Calculations

    Sometimes referred to as MRS, the marginal rate of substitution measures the rate at which an individual must give up one asset to obtain a single additional unit of a second asset, while keeping overall utility constant. MRS can measure physical goods, but also assets such as labor or time

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Definitions of ’margin’ and meaning of ’margin’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’margin’ and other financial terms with our online QFINANCE Financial Dictionary.

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