Business management glossary/Realization rate

Realization rate

General

The percentage of recorded billable work that actually gets invoiced and paid, after write-downs and discounts (amount billed divided by the standard value of hours worked). A low realization rate signals leakage between the work done and the revenue collected.

Related terms

Billable utilization rateAccounts payable (AP)Committed costWork in progress (WIP)Time and materials (T&M) billingNet profit margin

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