Analyze the cost of each job in a production unit, estimate projects and manage tasks
Know what it would take to get the project done
Estimating the costs for the project can be tricky unless you have a job costing software that can do it for you. Keep your customers satisfied - tell them the exact costs for each project and task.
Focus on profit-making projects
Now you know what projects increase your company profit. Because job costing tracks costs and revenue in detail for each job, it is a helpful tool in evaluating individual jobs and analyzing if any expenses can be reduced on similar projects in the future.
Good for a variety of jobs
Job costing comes handy if costs vary widely from job to job. It is best suited to those situations where goods and services are produced upon receipt of a customer order, according to customer specifications.
Cost breakdown made easy
Look at each project in detail, breaking down the costs of labor, materials and overhead. Calculate how much it costs your business to employ all staff members who will work on the project per day. Multiply the payroll day rate by the amount of time you estimate you’ll need to complete the job. Calculate the cost of all materials used on the job. Estimate the total overhead costs factoring into the job, including rent, administrative costs and depreciation on the equipment used.
What are the key benefits of the Codejig ERP job costing module?
You know the complete details of labor, material, and overhead because the cost is segregated job-wise.
You track the actual profit from each job separately.
With the job costing module production planning becomes easier, as you can manage your inventory better.
Job costing can also help your business in making budgets.