Budgeting & Job Costing
Budgeting and Job Costing is essential for businesses as it helps business owners to make the right decisions in time.
Budgeting is where we calculate the project profitability by balancing project expenses with the income before the project starts. As the project processthe budgeted expenses will be analyzed with actual dataso that any variances can be identified on time and so that management can solve the problem as soon as it occurs.
Budgeting helps:
- to set the accurate goals
- to control project expenses
- to keep track of the planned profitability
- to prevent from unnecessary costs
- to evaluate the performance of the project and compare it with the other project identifying problems and opportunities.
Once the budget is created, we will keep track of the project costing. It willbe tracked by jobs, by type of expensessuch as labour, material, overhead, equipment rent, and other expenses as the project requires.
- with the job costing the owners can identify the problemon time:
- is the project running on budget or not?
- where is the target margin?
- If the client needs to be re-priced?
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Saved: 13.01.2021
