In bookkeeping, job costing is simply the task of tracking the expenses on a project and comparing them to the revenue that job produces. Job costing is critical for high-dollar jobs like building projects, consulting or architectural contracting, but it is also used by manufacturers to record and compile costs for materials, overhead and labor for a specific job or batch of products. Job costing can give a business keen insights to reduce expenses and improve profitability, if properly utilized.
