Goodbye Job Cost Accountancy--Dickeson

First, add up all estimated costs of jobs performed under your job cost system for the past year or six months. Now add up all the completed job costs under your system for those same jobs. Compare estimate versus actual job cost totals. Now compare them job-by-job.

Next, add up all costs charged under the job cost system for a year or six months. Compare that total with the equivalent cost charges for the same period from your general ledger accounts. Check your blood pressure, temperature and pulse. Feel stupid? Silly? We're using an obsolete model.