Job Costing
Definition
Job costing tracks all expenses for a specific project — labor, materials, subs, and overhead — to determine actual profit or loss and improve future pricing.
Common Questions
Real-World Example
CRM Services reviews a completed bathroom tile repair and discovers the job took 2 hours longer than quoted — adjusting future bids accordingly.
Why It Matters
Job costing is a core business intelligence tool for pricing work profitably.
Related Terms
A scope of work is a written document defining exactly what work will be performed, what materials w...
Overhead and profit (O&P) is the combined percentage added to estimates to cover indirect business c...
A labor rate is the dollar amount charged per hour for a technician on a job. There are two rates: c...
Material markup is the percentage added to material costs before charging the client, covering sourc...