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Glossary of Terms
- Business Margin
Refers to the percentage added to the base cost of a service or product, which covers both the business’s profit and the necessary expenses required to operate effectively.
- Service Charge
A fee added to the base remuneration to account for the additional costs of delivering the service, including business overheads and operational expenses.
- Operational Margin
The difference between the base cost and the final price charged, representing the amount used to cover business operations, including overheads, while leaving a portion for profitability.
- Overhead Recovery
This term describes the portion of the total cost that is allocated to cover fixed and variable overheads of the business, such as utilities, administrative costs, and other indirect expenses.
- Cost Recovery
The percentage added to cover all expenses associated with providing the service or product, ensuring that the business breaks even on operational costs before accounting for profit.
