# Gross Profit by Cabinet Job: Keep the Definition Consistent

Canonical: https://millbase.ca/blog/gross-profit-by-cabinet-job-keep-the-definition-consistent
Author: [Coby Birenbaum](https://www.linkedin.com/in/cobybirenbaum/)
Published: 2026-10-19
Updated: 2026-10-19
Archive edition: 2026-06-18

Job profitability reports need a clear definition of revenue and included costs.

Job profitability reports need a clear definition of revenue and included costs. Two reports can disagree because one includes installation or [overhead](https://quickbooks.intuit.com/learn-support/en-us/help-article/job-costing/track-job-costs-quickbooks-desktop/L2X01vi47_US_en_US) and the other does not. Label the measure before using it to compare work.

## Prepare the comparison

- Identify the agreed selling amount and approved changes.
- Define direct materials, labor, subcontract, delivery, and other included costs.
- Separate estimated costs from posted actuals.
- State whether the job is open, operationally complete, or financially closed.

## A comparison example

A hypothetical $20,000 job with $14,000 included costs shows a $6,000 difference, or 30% of revenue. If $2,000 of installation cost is still missing, that figure is incomplete. The arithmetic cannot correct missing inputs.

## Review like with like

Compare similar job families and stages of completion. Use the results to investigate pricing and execution assumptions, not to declare a whole customer segment profitable from one unusual order.

## Related reading

- [Cabinet Shop Job Costing: Separate Margin From Markup](https://millbase.ca/blog/cabinet-shop-job-costing-separate-margin-from-markup)
- [Job Codes That Connect Estimates, Labor, and Materials](https://millbase.ca/blog/job-codes-that-connect-estimates-labor-and-materials)

## Definitions and further reference

- [Intuit: job costing and cost records](https://quickbooks.intuit.com/learn-support/en-us/help-article/job-costing/track-job-costs-quickbooks-desktop/L2X01vi47_US_en_US)

## How Millbase can help your shop

### Bring job-cost reviews back to the recorded work

Use [Millbase project tracking](https://millbase.ca/#projects) to keep a cabinet job and its sub-projects together, then compare estimates with recorded labour and material costs. [Insights and reports](https://millbase.ca/#insights) help the team inspect the people and workstations behind a total and export supported results for the next review.

Ask the [Millbase AI agent](https://millbase.ca/#how-it-works) a question grounded in your workspace records. For example: *“Compare this project’s estimated and actual labour, then break the logged hours down by workstation.”* You can select a project or worker, ask follow-up questions, and request [supported reports and CSV exports](https://millbase.ca/#insights).

Check the date range, job scope, and recorded inputs before changing a quote. Keep the accounting treatment of overhead, tax, and revenue in the appropriate financial process; a shop-floor cost breakdown is only as complete as the inputs recorded.

## Explore the wider topic

For the broader workflow and decisions behind this guide, read [Cabinet Shop Job Costing: Separate Margin From Markup](https://millbase.ca/blog/cabinet-shop-job-costing-separate-margin-from-markup).

## Frequently asked questions

### Is gross profit the same as net profit?

No. The cost categories differ. Define the report and use the appropriate accounting interpretation for the business.

### When is a job ready for a final review?

When the relevant work, invoices, corrections, and approved changes are complete enough for the chosen analysis. Mark remaining uncertainty explicitly.