How does AssessTEAM use man-hours invested to compute the profitability of a project?

Under the Profitability plan, one of the cost components to projects is variable cost that come from employee timesheets. The timesheet hours entered by employees are converted to man-hour costs by using their hourly rates. The profit amount is calculated by subtracting the total cost of the project from the budget identified for that project. Moreover, the project profitability is determined by calculating the ratio of the profit earned to total budget.