Last month we discussed job costing at
the income statement level, what costs
go above the line, and how job costing
can be used to make your pricing more
accurate.
This month we'll create an abbreviated
estimate for a framing job, and follow
it from job costing to making pricing
corrections.
First, to do meaningful job costing,
your estimates must have a high degree
of pricing consistency. By making a
price book that is too complicated, you
may be creating a monster that will be
hard to use and will make it difficult for
you to achieve price consistency.
Never use a bidding unit of measure
that isn't represented in the plan. For
example, a plan doesn't show