CPSM Study Group - Domain 6 TEST -
SMPS OK Questions And Answers
2025|2026 Verified Graded A+ Already
Passed!
Source: Marketing Handbook for the Design & Construction
Professional, 3rd Edition,
Dennis Paoletti, SMPS, 2009, p. 549.)
Domain 6
BONUS
Net Multiplier
The net multiplier is the ratio of net revenues (generated by in-house
labor only, without reimbursable expenses) to total direct labor (raw
labor salary only, without fringe benefits).
Net Revenue (in-house labor only)
,÷ $Total Direct Labor (raw salary only)
= Net Multiplier
So, if a firm's revenues are $2.8 million and its total direct labor charged
to projects is $800,000, what is the firm's net multiplier? - CORRECT
ANSWER answer-BONUS
3.5
$2,800,000 ÷ $800,000 = 3.5
Source: Marketing Handbook for the Design & Construction
Professional, 3rd Edition,
Dennis Paoletti, SMPS, 2009, p. 549.)
Domain 6
BONUS
Net Multiplier
, The net multiplier is a measure of what? - CORRECT ANSWER answer-
BONUS
Efficiency!
I higher multiplier means potential for higher profits!
Source: Marketing Handbook for the Design & Construction
Professional, 3rd Edition,
Dennis Paoletti, SMPS, 2009, p. 549.)
Domain 6
BONUS
Improving the Net Multiplier
What are ways to improve a company's net multiplier?
• Perform projects in your core expertise for a fixed fee
• Provide adequate employee software training
• Control unpaid scope creep - CORRECT ANSWER answer-BONUS
Because the Net Multiplier means that staff is more efficient and you
will be able to finish projects more quickly... and you won't be
reinventing the wheel on every new project... and you'll have standards
SMPS OK Questions And Answers
2025|2026 Verified Graded A+ Already
Passed!
Source: Marketing Handbook for the Design & Construction
Professional, 3rd Edition,
Dennis Paoletti, SMPS, 2009, p. 549.)
Domain 6
BONUS
Net Multiplier
The net multiplier is the ratio of net revenues (generated by in-house
labor only, without reimbursable expenses) to total direct labor (raw
labor salary only, without fringe benefits).
Net Revenue (in-house labor only)
,÷ $Total Direct Labor (raw salary only)
= Net Multiplier
So, if a firm's revenues are $2.8 million and its total direct labor charged
to projects is $800,000, what is the firm's net multiplier? - CORRECT
ANSWER answer-BONUS
3.5
$2,800,000 ÷ $800,000 = 3.5
Source: Marketing Handbook for the Design & Construction
Professional, 3rd Edition,
Dennis Paoletti, SMPS, 2009, p. 549.)
Domain 6
BONUS
Net Multiplier
, The net multiplier is a measure of what? - CORRECT ANSWER answer-
BONUS
Efficiency!
I higher multiplier means potential for higher profits!
Source: Marketing Handbook for the Design & Construction
Professional, 3rd Edition,
Dennis Paoletti, SMPS, 2009, p. 549.)
Domain 6
BONUS
Improving the Net Multiplier
What are ways to improve a company's net multiplier?
• Perform projects in your core expertise for a fixed fee
• Provide adequate employee software training
• Control unpaid scope creep - CORRECT ANSWER answer-BONUS
Because the Net Multiplier means that staff is more efficient and you
will be able to finish projects more quickly... and you won't be
reinventing the wheel on every new project... and you'll have standards
