Gross Margin

Presented By:-
Job Cost Report Abhiroop Bose
Presentation Covers

Planning

Fundamentals for JCR

Why JCR is Important

CONTENTS

How a JCR is Prepared

Discussions
Planning? Is it really Required?
Planning
Objective:-
 Formulation of More than 1
detailed Plan
Target:-
 To achieve Optimum Balance of
Needs or Demands with
available Resources
Steps to Implement a Plan
Importance
Provides Direction
Provides Opportunity to analyze Alternative
Courses of Action
Reduces Uncertainties
Minimizes Impulsive & Arbitrary Decisions

Identify Organize Evaluate

Fundamentals for JCR
Fundamentals for JCR
Elements for Cost
 Material cost Direct
 Departmental Labour Cost
 Sub-contract Labour Total
 Consumables Cost
 Overheads
 Plant Cost Indirect
Cost
 Provision for expenses
 Deferred expenses
Fundamentals for JCR
Types of Contract
 Lump Sum Contract  Cost Plus Fixed Fee
 Item Rate Contract  Cost Plus Variable %age
 Cost Plus Fixed %age  Target Estimate Contract

Systems from which Data are Derived

 Work Order Management  Workmen Management System
 Supply Chain Management  Human Resource Management
 Customer Relationship  Job Costing Module
Management
What is JCR?

A Report
Details of Cost Incurred & Future Costs

Forecast P&L of a Project

Projects End Performance of a Project

Tool for Cost control & Cost reduction

Components of JCR
 ACE Original Estimates for Revised Qty’s
 Cost To Date Revised Sales
 Revised Estimates to Complete(ETC)  Variance
 Revised Estimates for Revised Qty’s
Name of the Job Site Code Job No. Month
Contractual Date of Commencement
Contractual Date of Completion Original Contract Value
Expected Date of Completion
Revised Contract Value
Cost Item UOM Job Status todate Estimates to complete Revised Estimate Original Estimate Variance Revised Remarks
for Revised Quantity Sales
Code Qty. Total Unit Qty. Total Unit Qty. Total Unit Qty. Total Unit Price
Cost Cost Cost Cost Cost Cost Cost Cost

Total

Rs.
Margin %
Planning Engineer Site Accountant PM / CM
How a JCR
is
Prepared?
Key Issues to Look while Preparing JCR
Indents to be posted on a daily basis/ Weekly basis

P&M cost to be accounted against asset codes only

Estimate to Complete (ETC) to be calculated every time

OH estimation for the future period to be realistic

Cost deferred in cost statement should be essentially absorbed in “Estimate to

Complete”.

Material cost appearing in cost statement should not be deferred without proper
reconciliation

Cost of “direct supply items” billed to clients to be booked

Thank You