Péter Tófalvi (asker) Aug 15, 2017:

Got it! This is https://en.wikipedia.org/wiki/Operating_margin per total costs.

Péter Tófalvi (asker) Aug 15, 2017:

@Alison The answerer says (Legnagyobb sajnálatomra az "omtc" rövidítést még nem sikerült megfejtenem.) that unfortunately he wasn't able to decipher this abbreviation.
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Oh, wait!
There is another discussion entry where “operating margin on total costs” is mentioned.
So, this probably is the solution.

philgoddard Aug 15, 2017:

Could be, Alison It gets only seven hits, but that doesn't mean it's wrong.

Alison MacG Aug 15, 2017:

I'm not sure how helpful either of these is.
1) Mentioned in a previous question from Hungarian to German (much of which I don't understand as I don't read Hungarian)
http://www.proz.com/kudoz/hungarian_to_german/accounting/436...
2) If the text was translated from Japanese, this may be something similar
Furthermore, since the TNMM has three profit indicators for its application (ratio provided for in Article 39-12(8)-2 of the Cabinet Order for Enforcement of the ASMT [operating margin on sales], ratio provided for in Article 39-12(8)-3 [operating margin on total costs] and the ratio provided for in Article 39-12(8) 4 and 5 [gross margin on operating costs]), it is necessary to examine which of the profit margins is adequate to use.
https://www.nta.go.jp/foreign_language/08.pdf

philgoddard Aug 15, 2017:

It sounds like a lazy translation. You should never have an acronym where the letters don't match the words - it's confusing, and it slows the reader down.
Do you know what language it might have been translated from?

Péter Tófalvi (asker) Aug 15, 2017:

The context is a transfer pricing documentation.
E.g.:

“We have the financial data of independent companies carrying out comparable activities, so we can compare the operating cost-based return (OMTC) on services supplied by A and B with the OMTC achieved by independent companies carrying out comparative activities.”

I am not sure that OMTC exactly means operating cost-based return.
The English text is probably a translation from another language, and OMTC was given as the abbreviation used in the international literature.
I searched the OECD website, but no hits for OMTC.

IMHO the first half, i.e. OM probably means operating margin.

philgoddard Aug 15, 2017:

Could we have the context, please.