Overheads fixed and variable, Labour and Material usage, Absorption rates,……. If this means nothing to you but your business produces goods for an end user or has a number of different strings to it you may benefit from activity based costings analysis. This can help you calculate your most profitable lines or where the greatest wastage is. Knowing this can help ensure you get value for money and so do your customers. 

Finding the best value for money materials; considering all assets required, including hired equipment and labour time; ensuring you can meet all deadlines and customer requirements legally; not overlapping jobs and annoying everyone. These are just a few of the things contractual costings can help you get right, thus ensuring you get the job and leave happy satisfied customers behind whilst still keeping your business solvent.