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    Glossary

    Job Cost

    The fully loaded cost of completing a job (labor + burden + fuel + materials + truck + overhead).

    Job cost = direct labor × burden multiplier (1.25–1.4 for payroll taxes + workers comp + benefits) + materials at landed cost + fuel by gallons × $/gal + truck depreciation + allocated overhead. Subtract from revenue to get true gross margin.

    Related terms

    • Burden Rate

      The multiplier on direct wages that captures payroll taxes, workers' comp, benefits, and PTO.

    • Overhead Allocation

      The portion of fixed business costs charged against each job to capture true profitability.

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    • Hardwood, LVP & Laminate Flooring
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