FINANCIAL DATA USE IN COST CONTROL

This exploration of the manner in which financial information may be structured to assist the contractor/manager in decision making, focuses on one aspect of job management namely, the question of whether the job is making the profit originally estimated. A job cost control format is detailed. To be effective, the contractor needs the ability to control costs and therefore, gross profit, while the job is in progress. A possible job cost control system involves the updating of the original estimate of gross profit or indicated outcome while the job is in progress. Three procedures for doing this are illustrated. These procedures report increasingly detailed variances. As detailed variances are reported on a current bases, the likelihood of effective corrective action increases. To be effective, job cost control must be endorsed by management. In addition, there must be coordination between field and office staff, and job cost components must be carefully selected to ensure accuracy, the job costs should be tied to the contractors accounting system and balanced with the general ledger on a periodic basis.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/2642359
• Corporate Authors:

  Associated General Contractors of America

  2300 Wilson Boulevard, Suite 400
  Arlington, VA  United States  22201
• Authors:
  • Probst, F R
  • Trimberger, J
• Publication Date: 1975-11

Media Info

• Pagination: p. 31-33
• Serial:
  • Constructor
  • Volume: 57
  • Issue Number: 11
  • Publisher: Associated General Contractors of America
  • ISSN: 0162-6191

Subject/Index Terms

• TRT Terms: Accounting; Analysis; Contractors; Coordination; Costs; Decision making; Economics; Estimates; Financing; Job analysis; Management; Profits; Variance
• Uncontrolled Terms: Cost analysis; Cost data; Data
• Subject Areas: Administration and Management; Construction; Economics; Finance; Highways;

Filing Info

• Accession Number: 00128666
• Record Type: Publication
• Files: TRIS
• Created Date: Apr 21 1976 12:00AM