What is job costing?
Job Costing is the process of tracking the expenses incurred on a job they can be tracked against the original budget or an estimate for that job. Direct and indirect costs can be assigned to each open job; direct costs include the materials used, transportation costs, any rental equipment required and the associated staff costs for carrying out the work. Indirect costs can be amortised across jobs to give a complete job cost profile.
Actual costs such as payroll, administration and purchases can also be fed into the costing system to reflect actual, real costs and refine the level of charges. The main advantage of tracking this data is that it allows organisations to build up an accurate cost of works undertaken, and improves the estimation for future similar jobs. It also gives a wealth of job management information.