Job Costing is a precise cost accounting methodology designed to allocate all associated costs to a specific job or project. It involves tracking all the relevant direct costs such as labor, materials, and equipment utilized, as well as allocating a fair portion of indirect costs such as overhead, against a distinct project, batch, or customer order. The goal of Job Costing is to determine the exact cost of delivering a specific output and, therefore, to ascertain its profitability. For instance, a construction company might use Job Costing to calculate the costs associated with building a house, whereas a law firm might employ this system to analyze the financial performance of a client case. By assigning costs with this level of specificity, organizations gain a clearer understanding of their margins and can make informed decisions about pricing, contracting, and resource allocation. Tracking methodologies, such as software solutions that integrate with financial systems, make Job Costing practical and effective in modern business scenarios.