Contracts & ExecutionQuestion 168 of 1605
The primary purpose of job costing during a project is to:
a.Compare actual costs to the estimate so problems can be caught and corrected early
b.Determine the contractor's annual income tax
c.Set the wage rates for the next project
d.Replace the need for a written contract
Explanation
Job costing tracks actual labor, material, and other costs against the budget line by line, allowing the contractor to identify overruns early and take corrective action before losses grow.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)