Читать книгу Cost Accounting For Dummies - Kenneth W. Boyd - Страница 93

For some businesses, nearly every customer job has different costs, and that’s where job costing asserts its value. You need a job costing estimate in order to get the customer’s business, and you need to track costs accurately so you generate a reasonable profit.

The different costs for different jobs will often be self-evident. Material costs, labor hours, mileage cost, and type of equipment used are likely to vary. For example, a tree trimming company would incur more costs to remove a 30-foot tree than to remove a small stump. The big tree takes more labor and different equipment.

Some factors could lower costs and make a business more competitive in price (or improve its bottom line). For example, every few months I receive a flyer in the mail or a knock on my front door from a tree trimming company working on a job in my neighborhood. They offer me a free estimate while they are in my neighborhood. It’s a smart business move. If you’ve incurred the cost to locate your employees and equipment in a certain area, why not perform as much work as possible while you’re there? You can spread some costs (mileage, for example) over several jobs. As a result, your cost per job in that neighborhood is lower, and you increase your profit.

The business lesson is that a little bit of flyer can go a long way.