Ever wonder why your business doesn't generate the profit you would like it to or what your true costs of operations are? 

Believe it or not, most business owners and managers believe job costing is hard to develop and model.  Well, I can tell you from experience that job costing is pretty easy to figure out.

One of the most common mistakes in figuring out the cost of something is this confusion between standard cost and average cost.  We need to understand that standard cost is the last cost you paid for materials where it is important to factor real costs via the last price you paid for something.

Average costs is just as it states.  The average of costs over a period of time.  In other words, average costs is probably not the best factor for costing.

There are other factors to include in costing such as labor burden and overhead which is just a percentage of costs in a period of time.  And we cannot forget profit.  There must be a factor for profit.

Yes, even in these tough economic times, you can still realize profit.  It is possible.