Job Cost Estimating

The purpose for estimating is to determine the cost of a job in advance. By estimating the actual cost, as accurately as possible, you can make an intelligent bid on a job and set parameters for factors such as

  • The profit you expect to earn on the job

  • How long the job will take to complete

  • The quantity and types of employees and subcontractors necessary to complete the work

  • What parts and supplies you are required to have on hand before the work begins

By preparing a detailed estimate, you can judge your company's capability to complete the job on schedule.

Included in your estimate should be the following types of expenses:

  • Employee labor The number of employees, types of skills needed, cost of labor, and amount of time required to complete the job

  • Subcontracted labor The same information as with employee labor

  • Materials The types of materials and quantity of each, length of time required to obtain or produce materials, and cost of materials

  • Tools The types of tools and equipment required to perform the job and the cost of any tools or equipment not already owned by the company or subcontractors

  • Overhead The cost of indirect expenses such as administrative costs, facility expense, employee benefits, and wear and tear on equipment and tools

Show Me. QuickBooks 2006
Show Me QuickBooks 2006
ISBN: 0789735229
EAN: 2147483647
Year: 2005
Pages: 328
Authors: Gail Perry © 2008-2017.
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