While working with customers and implementing various projects, we pay a lot of attention to profitability, because none of us wants to work while losing money.
If we try to represent the profitability formula in the simplest way, it will look as follows: PROFIT = REVENUES OF THE PROJECT — (PRIME COST + EXPENSES).
The prime cost of the any professional business includes expenses for personnel, including direct taxes. Sometimes, it also includes a «specific fee» that is used to account for indirect costs such as the prime cost (management, marketing, sales, etc.). However, it still will be the prime cost of a man hour. We can get the information of the prime cost using information about labor contribution, i.e., through timesheets.