What is the financial outcome if the total job cost is $122,500 but the actual costs exceed it?

When analyzing the situation where total job costs amount to $122,500 and it is stated that actual costs exceed this figure, the financial outcome indicates a negative result, or loss. The calculation of the loss arises from determining the difference between the total job costs and the actual expenses incurred.

If the actual costs surpass the estimated job cost, it means that the expenses necessary to complete the job were higher than anticipated. For instance, if the actual costs were $129,515, the difference would be $129,515 - $122,500 = $7,015. This figure represents the amount by which the actual costs have exceeded the budgeted figure, leading to a loss.

The understanding of profit and loss in business management hinges on comparing costs against revenues or expected costs. In cases where costs outstrip what was budgeted without corresponding revenues to cover that excess, the outcome is clearly identified as a financial loss. Thus, when the question underscores the aspect of exceeding cost, and aligns it with an actual calculation demonstrating a negative outcome, the conclusion of a loss of $7,015 is indeed substantiated.