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Old 09-01-2004, 08:38 PM
emilioda emilioda is offline
Junior Member
Join Date: May 2004
Location: texas
Posts: 6
I can live with that but then I will need to attack it a different way. The report, "Profit and Loss by Job" will not be accurate because my Indirect labor burden will be posted. This is inaccurate because that labor burden was not an expense for the job. This is why I need to split up the direct and indirect labor burden.

Typically when I price out jobs, I calculate the direct labor and burden as cost and materials and then add a mark up for all my indirect costs (such as indirect labor and burden) and then add profit. I feel that I need to break it out this way in order to be able to look at my income statement and quickly see what my gross profit (income minus direct costs) is.

I use a pretty simple formula for pricing: Direct Costs + Overhead + Profit = Selling Price. I need to be able to see how much money I need to spend on direct cost to bring in X amount of revenue. This helps me calculate out a budget for future planning.

Please elaborate if you think there is another way around this.
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