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Define and discuss the the following terms: Fully Loaded or Fully Burdened Rate

Define and discuss the the following terms: Fully Loaded or Fully Burdened Rate

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Fully Loaded Cost means the direct cost of the applicable good, product or service plus indirect charges and overheads reasonably allocable to the provision of such good, product or service in accordance with US GAAP.

A fully-burdened labor rate is your full cost of an hour’s worth of work. It includes all payroll taxes and any other costs related to labor. Vacation pay, health insurance, and any other benefits or expenses related to employment are included.A charge rate is used in Time and Material contracts. It would include all labor-related costs just like the fully-burdened labor rate, but it normally also includes a chunk for other overhead expenses and often profit.

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