Managerial Accounting

contribution margin selling, general, and administrative costs for Tesla and manufacturing costs for tesla Photo by Paul Steuber on Unsplash
Managerial Accounting

Contribution Margin for Tesla

The contribution margin is the amount remaining from sales revenue after variable expenses have been deducted (Garrison et al., 2017). While the definition is simple, it may not be straightforward to calculate, especially if we only have limited secondary data. In this article, I will provide one illustration of how […]

contribution margin selling, general, and administrative costs for Tesla and manufacturing costs for tesla Photo by Paul Steuber on Unsplash
Managerial Accounting

Selling, General, and Administrative Costs for Tesla

Aside from its sophisticated manufacturing facility, Tesla has also an intricacy in its organization, which will distinguish its non-manufacturing costs. Its persistence to use direct distribution channels to its customers will differentiate its cost structure compared to other auto companies. This article will examine the selling, general, and administrative costs […]

contribution margin selling, general, and administrative costs for Tesla and manufacturing costs for tesla Photo by Paul Steuber on Unsplash
Managerial Accounting

Manufacturing Costs for Tesla

Tesla is a company known for its innovation in manufacturing electric vehicles (EVs) and clean energy instruments. Tesla manufactures the key module for their EV, such as battery pack, drive unit, and seating, in-house (Tesla Impact Report 2020, 2020). The company manufactures a large number of automobile parts in-house, which […]