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To well understand the field “margin” (in euro)

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 eric
(@chaussin)
Posts: 29
Active Member
Topic starter
 
[#3011]

If I well understood the margin is calculated as the rate of the difference between validated cost and reassessed cost, that is (validated cost-requested cost)/validated cost.
This margin take only account the costs.
Is it possible to have a view of the margin regard to the revenue (turnover, “chiffre d’affaire” in French) ?
For instance I have a project with a budget or revenue of 1000 Kilo Euro and my estimated cost is 600 KE. The most of the time it is interesting to have a point of view of the gross margin or contribution that is calculated as : (assessed revenue – assessed cost)/ assessed revenue.
In my example gross margin or contribution is (1000-600)/600=40%
Thank by advance for any precision.
Eric


 
Posted : 09 Feb 2016 13H58
(@babynus)
Posts: 14952
Member Admin
 

It is what is done if you consider that validated cost is the assessad revenue.
If not, where is defined for you the assessed revenue ?


 
Posted : 09 Feb 2016 22H57
 eric
(@chaussin)
Posts: 29
Active Member
Topic starter
 

Ok thank you very much for your reply that confirm my filling. So you can have a view of the margin regard to cost or revenue (of the initial budget) but not the both.
Thank
Eric


 
Posted : 12 Feb 2016 11H17
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