The primary purpose of job costing during a project is to:
Explanation
Job costing posts actual labor, material, subcontract and equipment costs against the estimate line by line while the job is still running, so an overrun surfaces in time to be corrected. Taxable income is computed from the year's books, not from one job's cost report. Wage rates come from the market or the applicable wage determination, not from the last job's costs. And no cost report substitutes for the written change order that documents extra work.
Law Reference: Job costing / cost control (industry practice); B&P §7159(c) (change orders in writing)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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