I’ve got questions of two:
What’s the difference between Net profit/ Net operating revenue? It’s quite confused in the Project Management flashcards, all described as deduct expenses. Is net profit the same as net income (which need to deduct tax)?
The difference between general liability and commercial general liability?
Hi @whuang and welcome to our ARE Community!
@Akurtzberg or @cat.heard9, either of you able to shed some light on their questions?
Net Profit -
The dollars remaining after deducting all direct and indirect labor and indirect expenses before any distributions are made or tax is paid.
Net Operating Revenue - Represents the net dollars remaining after deducting the invoiced consultant’s fees and expenses and all reimbursable and non-reimbursable project-related expenses.
AHPP P1018 talks about General liability and commercial general liability insurance.
When calculating the NOR, do the reimbursable project-related expenses deducted include direct labor expenses?