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Term | Definition/Calculation |
|---|---|
| Value | Recurring value Sum of all invoices for an agreementaddition costs for all agreements If annual, monthly value is from Total Value divided by 12 If monthly, with addition cost, Value = addition cost If monthly, without addition cost, Value = Total Monthly Billed Service Cost |
| Billed | Total amount of all invoices billed for an agreement |
| Profit | Billed - (Addition Costs + Labor Costs) |
| Margin | Profit / Billed |
| Addition Costs | Product cost for an agreement |
| Actual Labor Hours | Total recorded hours for an agreement |
| Effective Rate | (Billed - Addition Costs) / Labor Hours |
| Contribution Rate | Profit / Labor Hours |
| Target | Budgeted hours to achieve a certain profit margin |
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