Profit in Job Costing

Problem

why is profit not listed in soft costs section of cost control worksheet?

Diagnosis

profit is handled in lower part of cc sheet in MacNail construction accounting software, since profit is not a cost, it's what's left over after all expenses are paid.

Solution

Try to explain why we do it that way (comparing budgeted profit with actual), but if they really don't like it, they can:
• add profit in with overhead
• change some other soft cost line to profit, or
• insert a whole line (Add Rows in cost control manager fills in correct formulas) in soft cost area and call it profit.
Of course if they do any of that, they should set profit to zero down below.

Comments

Entered 10/14/93 by Vinay. Updated 11/19/2010.