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How do I calculate turnover and indirect cost? I understand the other questions. Accounting Business Consulig7 points) Accounting Business Consulting performs accounting advisory missions to
How do I calculate turnover and indirect cost? I understand the other questions.
Accounting Business Consulig7 points) Accounting Business Consulting performs accounting advisory missions to various small and medium size companies. ABC bills its clients on the basis of a daily selling price negotiated for each mission multiplied by the amount of consulting hours spent. The company wants to calculate the profitability of its clients files. The costs are the following ones: The cost of consultants, which is a direct cost to clients' files. The cost per consultant per day is 700: Other Direct costs for clients (travels, document reprography), presented line 3 in the table. Indirect costs: the overhead costs (230,000) are allocated to the clients on the basis of the turnover for each mission. Here are the data for 2017, with the details for three clients files: Client "A" Client "B" Client "C" Others Number of days 100 300 40 720 Daily price for consultants negotiated with 1.20 each client (in E) 1,000 1,500 1,000 Direct costs per clients (travels, etc.), in 5,000 50,000 2,000 75,000 (2 points): Calculate the revenues, full cost and profit for missions A, B and C Client A Client B Client C 120,000 300,000 60,000 revenues Costs (please detail) Cost of consultants Other direct costs 70,000 210,000 28,000 5,000 23,000 57,500 11,500 50,0002,000 Indirect costs (allocated on the basis of turnover) Total turnover1,200,000) TOTAL COST 98,000 317,500 1,500 PROFIT/ (Loss) 22,000 (17,500) 18,500Step by Step Solution
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