Cost Codes – Subset of Item Codes
Minimum Bottom Line Profit Should Average 9.4%!
For Trades & Subcontractors, at Least 11%
After Income Taxes Are Paid!
Cost codes are the second grouping of codes commonly found with item codes in accounting. Cost codes are unique identifiers for inventory items either used or sold individually or as a part of an assembly. They are used in both financial and cost accounting. It is more common to utilize their function in cost accounting than with financial accounting.
The most popular tool to create a cost code is the universal product code, the unique number and bar coding with retail products sold. This same system is also used in manufacturing of complex products comprising multiple parts (think of autos, mowers, tools, appliances etc.).
In small business, it is actually done differently. Here, item codes are unique identifiers to identify certain services or functions of production. This article will explain this from the perspective of labor and a construction contract. For both,