JOB COST CONTROL

APPLICATION OF OVERHEAD

• Provide a historical cost summary to be used in establishing future estimating unit cost standards

• Accurately calculated overhead costs

• Correct use of overhead in estimating

·         Set basis for controlling labor while job is in progress

TOOL / EQUIPMENT CONTROL

• Completely coordinate estimating procedures with direct labor costs

• Sound equipment replacement policy

• Scheduled preventative maintenance

• Coordinate general accounting with cost records

• Incorporate change orders properly so cost

• Operator training

• Equipment cost records

reporting is meaningful

• Spotlight variance between estimated and actual

• Tool control

direct costs while job is still running; method set

PERFORMANCE STANDARDS

• for immediate action on variances

• Provide basis for supervisory incentives

• Volume sufficient to absorb overhead and produce desired profit

• Actual profit equal or better than estimated