I am watching the finantial part Of PcM and found a fundamental error in the explanation of NOR in the video [Firm Financials: Profit-Loss Statement at 5:15 the video says: the NOR represents the Firm Gross Revenue and this statement had me confused and finally I debunked.
NOR DO NOT REPRESENT the firm GROSS REVENUE, these are two different finantial Terms:
Gross revenue : This is the total revenue generated from services or sales before any deductions.
And NOR Also known as Net Revenue, this is the revenue after subtracting:
- Consultant fees (e.g., structural, MEP, landscape)
- Reimbursable expenses passed through to the client.
This error in the video throw me out of understanding this to easily understand and calculate overhead rate, net multiplier, break-even rate**, and other financial performance metrics.
Does anyone have any opinion about this here ?
Thank you.