What is job costing in cost accounting?

Job costing is a method in cost accounting where costs are assigned to specific jobs or projects. Every project/job is treated separately, tracking labor, materials, and overhead. It's commonly used in manufacturing, construction, and service industries to measure profitability per job.

Think of it like a detailed expense report for a single order. If a company produces custom furniture, each chair's material, labor, and overhead are tracked individually using job costing. It helps in pricing and analyzing efficiency.