Dickeson--Job Costing - A Virtual Reality Check

Virtual Confusion
When we use virtual costs as the basis for pricing, we confuse ourselves. In production, people tend to believe that if that virtual cost was included as the price that the job sold for, then the client is paying those virtual costs. Utter nonsense. Customers pay prices, not costs. When the job is actually performed more efficiently than expected, do we give the customer a credit? Reduce the price? No way! If performance is less efficient than planned, do we bill the customer the additional virtual costs? Come on!