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Term | Definition/Calculation | ||
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Value | Sum of addition price for all agreements If annual, monthly value is from Total Value divided by 12 If monthly, with addition price, Value = addition priceIf monthly, without addition price, Value = Total Monthly | ||
Billed Service Cost | Billed | Sum of invoiced products monthly + service totalTotal 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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