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Financialaka: cost codingaka: WBS codeaka: cost category

Cost Code

In Plain English

A numbered category in the accounting system used to track costs for each type of work on a project.

Definition

A cost code is a numeric or alphanumeric identifier assigned to a specific category of work, material, or overhead expense in a contractor's job cost accounting system. Cost codes enable tracking of actual costs against estimated costs for each work item, providing visibility into project profitability and productivity. The CSI MasterFormat division structure is commonly used as the basis for cost coding.

Example

The project accountant assigned all concrete labor to cost code 03300 and all formwork materials to 03100 so the superintendent could see weekly cost performance by trade.

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