Costing Methods: Contribution-Costing Technique

Contribution-Costing Technique, or Marginal Costing, is a method of costing in which only Direct Costs are allocated to products, divisions or departments of the business, not Indirect Costs (Overheads).

Contribution-Costing Technique solves the problem of deciding on the most appropriate way to apportion, or share out, Indirect Costs (Overheads) — it does not apportion them at all.

https://www.superbusinessmanager.com/costing-methods-contribution-costing-technique/