Job Cost Software Benefits

The Greentree ERP Software Solution includes a world-class job cost module. A job cost system delivers amongst other things a very efficient method to calculate the exact expenses required for materials, labour and overheads before producing an item. Getting relevant information about manufacturing costs for example allows you to evaluate profitability and decide whether you should produce that particular item or not. Besides this great advantage, the job cost order system delivers many other unique benefits as follows:
Profitability: The job costing system allows you to assign costs separately to individual operations and calculate the profit margin you’ll be getting on each job. This way, you can decide which operations are more profitable for producing a specific product. Although this particular function indicates that the system is suitable especially for the companies that handle custom orders, it can be used by any manufacturer who wants to get detailed statistics regarding individual manufacturing operations.
Performance: The job costing system also enables you to assess the performance of your employees. Unlike process costing, which ascertains the qualities of an entire workgroup or department, job order costing provides sufficient information to help you evaluate individual performance data in terms of productivity, efficiency, and cost-control. With the help of this tool, you can identify the employees who fail to meet performance expectations.
Accessibility: The job costing system provides access to the expenses incurred on each job, even during the manufacturing process. This gives you the opportunity to check costs one by one, identify all the items included, and understand why they happened. Based on your findings, you can develop specific strategies to control costs better in the future.
Flexibility: The job costing system is flexible enough to help you calculate particular indirect costs, such as manufacturing overhead. Calculating this cost without using the system is very difficult especially because it consists of various items, which may range from the salaries of certain employees to the grease used in machines. To help you out, a complex algorithm in the job costing system traces all the items involved in manufacturing overhead, transforming a very complex calculation assignment into a really simple operation.
Accuracy: The job costing system is also very accurate. Based on particular criteria, it directs specific types of costs towards appropriate accounts. The system, for example, automatically groups selling and marketing costs, which are period expenses, under the income statement instead of the manufacturing overhead account.
Scalability: The job costing system is a highly scalable solution that can be set up to match a variety of processes, regardless of whether they’re associated with very complex manufacturing operations in large companies or simple tasks in small businesses, such as advertising agencies and law firms. This means that you can use the job costing system regardless of the size of your business.
Continue Monitoring: The job costing system allows you to monitor the production process continuously, giving you enough time to identify potential issues and make corrections to avoid catastrophic situations, such as producing defective items or going over budget even before the manufacturing process ends.
Staying on top of projects isn’t easy, but it’s possible with Greentree.
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Go to the GT Business Greentree Job Cost area

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