Why quote-versus-actual is the file
A job shop that quotes from memory and posts to a single “shop supplies” account has no job cost. A product plant that never revisits standard cost has the same hole with nicer software. Financial statements explained is the map. SDE versus EBITDA still decides the earnings base. Job cost decides whether that base is real.
BLS OEWS May 2025 prints a machinist median of $58,750 (Source: BLS OEWS). If the quote assumed a cheaper hour and the floor paid that median, the job lost money. That is the diligence sentence.
Rework, scrap, and premium freight are where quotes go to die. If the job-cost system never sees those codes, the P&L margin is an average that hides the wounds. Twenty-four months of closed jobs should show the ugly ones. A CIM that only shows the winners is a lie. Standard-cost shops should show the last time standards were updated and against what index.
How it works still wants the job list with the tax returns. The financial-statements guide is the map. SDE versus EBITDA still decides the earnings base. Job cost decides whether that base is real. This page stays on the pile. Jason Taken is not a cost accountant. The CPA and the QoE firm own the method.
How job cost touches WIP and the peg
Work in process is often a job-cost roll. If the peg uses a different method than the job-cost system, the true-up invents a fight. A 7(a) lender still works inside a $5 million box (Source: SBA). A messy job-cost file is how that box gets nervous.
A CIM that only shows winning jobs is a lie. Twenty-four months of closed jobs should include the ugly ones. Scrap, rework, and premium freight are where quotes go to die. If the system never sees those codes, the P&L margin is an average that hides the wounds. Standard-cost shops should show the last time standards were updated. Replacement wages from BLS OEWS still test whether the quote assumed a cheaper hour than the floor paid.
How it works still wants the job list with the tax returns. FAQ owns the questions. The job-costing owner is the process home. Jason Taken is not a cost accountant.
What a buyer should pull
Twenty-four months of closed jobs, the quote file, scrap, and rework. BizBuySell’s 2.75x manufacturing SDE median (Source: BizBuySell) sits on earnings that survive that pull.
| Artifact | What it proves | What it does not |
|---|---|---|
| Quote file | The promise | Actual hours |
| Job-cost close | Actual pile | Future mix |
| P&L margin | Average | The bad jobs |
Why does quote-versus-actual decide the earnings base?
Because a shop that quotes from memory and posts to a single shop-supplies account has no way to prove the margin on the jobs that actually shipped. A product plant that never revisits standard cost has the same hole with nicer software. Twenty-four months of closed jobs, the quote file, scrap, and rework are the pull. A P&L margin is an average. The bad jobs hide inside it.
Replacement wages matter here. BLS OEWS May 2025 prints a machinist median of $58,750 and a welder median of $53,750. If the quote assumed a cheaper hour, the job lost money. That is the diligence sentence. A 7(a) lender inside a $5 million box will not treat a missing job-cost file as a rounding error. A QoE on a larger EBITDA file will test the same hole with more staff.
How it works still wants tax returns and a job list before a tour. FAQ owns the questions. The glossary hands you to the job-costing owner, then to a confidential intro call. Jason Taken is a business broker, not a cost accountant.
If the estimator and the cost clerk disagree on how a job closes, the earnings base is an argument waiting for a QoE. Put both people in the NDA room. Ask them to walk the same closed job. The gap between their stories is the diligence.
What this page will not do
It will not certify a costing method. Jason Taken is a business broker. The glossary sends you to the owner. After the noun is straight, book a confidential intro call.