How to Calculate Notional Profit (PDF)
NB: When the contract is between 30% and 80%, 2/3 is the generally accepted fraction in order to arrive at a uniform answer.
NB: When the contract is between 30% and 80%, 2/3 is the generally accepted fraction in order to arrive at a uniform answer.
This guide explains how to calculate production overhead, non-production overhead and the calculation of profit. Most tested questions on job costing will require you to calculate the cost per job.