Job costing is the process of tracking the costs associated with specific jobs or projects, including labor, materials, and overhead expenses.
This method allows businesses to determine the profitability of individual projects by allocating employee hours and resources to specific tasks.
For example, in a construction company, job costing helps managers assess how much time and money are spent on building a house compared to the revenue generated from the sale. By analyzing these costs, businesses can make informed decisions about pricing, resource allocation, and project management.
