Job costing is a method used to determine the costs associated with a specific job or project. It involves tracking all expenses, including materials, labor, and overhead, to calculate the total cost of completing that job. This approach is commonly used in industries like construction and manufacturing, where each project can vary significantly in scope and requirements. By using job costing, businesses can set accurate prices for their services and ensure profitability. It also helps in budgeting and financial planning, as companies can analyze past jobs to improve future cost estimates and resource allocation.