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Improving Profit: Using Contribution Metrics to Boost the Bottom Line by Keith N. Cleland

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Introduction

“Contribution Metrics” evolved from a consulting outreach to a printing business experiencing problems. As a professor of management accounting with a consulting background, I thought it would provide an excellent case study for third-year students. The successful outcome, the extent of which surprised both the business owner and myself, led to a new and startlingly simple way of improving profitability.

Recognizing the benefits of this new concept, which over time became known as Contribution-Based Activity (CBA), accounting practices attended my short courses and conducted client-seminars and client workshops to get the message across. Clients ranged from sole proprietorships to multinationals, and size made little difference ...

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