In plain words
Job costing tags every cost and every dollar of revenue to the job it belongs to: materials, labor hours, subcontractors, equipment. Then each job has its own profit line.
Without it you know whether the year made money. With it you know which kinds of jobs make money, and which ones you should price higher or stop taking.
Example
One deck job
Billed to the customer$18,000
Materials$7,200
Labor$5,400
Subcontractor$1,500
Job profit: $3,900, or 22% of the price. Example figures.
In our model
agentsperson
Agents tag bills and hours to the right job. Your person reviews the job reports and fixes what landed on the wrong job.
Agents tag bills and hours to the right job. Your person reviews the job reports and fixes what landed on the wrong job.