Not sure how i should be calculating a gross margin for a consultancy in an example where revenue is comprised of consulting fees and recharged expenses. Should I be using the gross revenue, or just the total rev from consulting fees? I ask because a larger than normal recharge of expenses dramatically skews the margin.
Hi David
Welcome to the forum. We always ask newbies to do a little intro about themselves, bookkeeper or Accountant, where based, which prof body you are with, level of study or QE, how long you've been in this crazy business, that sort of thing. Just a few lines, helps everyone to get to know you a little and also to help pitch answers.
Also, we ask peeps to add their first name to their signature bar so that it pops up on all posts, just saves us keeping looking it up. Go to edit profile, easy peasy and only takes a sec.
Is this one an exam or study Q and is so which exams?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
