Management can use job cost information to control costs on future jobs.

Question

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Job cost information provides details on the actual costs incurred for a specific job. By analyzing this data, management can identify areas where cost overruns occurred and take steps to control costs on future jobs. For example, if labor costs were high on a particular job, management might consider using more efficient processes or negotiating lower wages with employees or contractors on future jobs. Similarly, if materials costs were high, management might seek out more affordable vendors or consider using alternative materials. Overall, by using job cost information to make informed decisions, management can improve profitability and ensure that future projects are completed within budget.

Management Can Use Job Cost Information to Control Costs on Future