Operating margin
The Transparency of Suppliers and Government to the Public, published by the Cabinet Office in 2015, states: ‘Operating Margin should reflect all of the sales, general and administrative costs as well as any additional costs, depreciation (if relevant) and overheads in an itemised manner. This calculation should be consistent with the manner in which the supplier’s accountants would calculate the corporate operating margin. If the supplier feels this calculation does not accurately reflect the commercial situation, additional costs may be added or explained to accurately reflect the situation.’
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