BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Communication of Revenue (how revenue is communicated internally)
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Charge Out Rate ( rate we charge the client)
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Change Out Rate ( rate required for using a different employee)
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Cost of Resource (cost of employee)
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Detailed explanation-1: -What is a Charge Out Rate. A charge out rate is the rate you must charge a client for an hour of your labor. It takes into account your annual salary, direct and indirect cost as well as your profit margin.
Detailed explanation-2: -A charge-out rate is the amount you charge your customer for an hour of labour. This is different to the ‘hourly rate’ you may get paid by an employer, or pay your employees and subcontractors.
Detailed explanation-3: -If you want to know how to determine pricing for a service, add together your total costs and multiply it by your desired profit margin percentage. Then, add that amount to your costs. Pro tip: Consider your costs, the market, your perceived value, and time invested to come up with a fair profit margin.
Detailed explanation-4: -Calculate Your Hourly Rate Business schools teach a standard formula for determining an hourly rate: Add up your labor and overhead costs, add the profit you want to earn, then divide the total by your hours worked. This is the minimum you must charge to pay your expenses, pay yourself a salary, and earn a profit.
Detailed explanation-5: -Most architects will charge by a percentage of the total cost of the building works. This ranges between 5-12% on average.