What is Job Costing?
A definition of Job Costing
“Job costing is a method of tracking expenses associated with a specific project or job. This accounting method helps businesses determine the exact cost of labor, materials, and overhead for each job undertaken.”

Business Glossary > What is Job Costing?
Examples of Job Costing in a Sentence:
Job costing helps businesses track expenses on individual projects.
The company uses job costing to manage the budget for large contracts.
Understanding job costing is crucial for accurate project financial analysis.
Why is Job Costing Important in Business?
Understanding job costing is crucial for small and large businesses to accurately allocate and track costs for specific projects. This method ensures each job’s profitability is clear and supports efficient budgeting and financial planning.
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Associated Terms
Here are some associated business terms and synonyms for “Job Costing”:
- Job Order Costing
- Project Costing
- Task Costing
Construction Company Job Costing
Construction companies often rely on job costing to accurately estimate the cost of building projects. By evaluating labor, material, and equipment expenses separately for each job, they ensure profitability and client satisfaction, adjusting for variations in each project’s unique requirements.
Final Notes on Job Costing
When implementing job costing, companies should analyze:
- Labor and material costs
- Overhead allocation
- Project timelines
This helps in precise budgeting and maximizing project efficiency.
This has been a definition of Job Costing meaning.
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