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Allocating Costs and Analyzing Unit Economics

If you have an accurate profit and loss statement, you can quickly identify your company's total direct (above-the-line) costs. A company's profit and loss statement alone, however, cannot reveal how those expenses are divided between products, services, and projects or between employees, departments, and locations.

When done right, job costing allows you to see how and where each of your company's precious dollars are truly spent.

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