Definition
Job cost is the total of every direct cost attributable to a single job, accumulated from work-order release to job close. In standard cost-accounting language this is "job-order costing" — the framework used when production is structured as discrete projects rather than continuous processes. Each job has its own cost record (the job cost sheet), and the running total sits in the Work-in-Progress (WIP) inventory account on the balance sheet until the job completes. For construction and custom fabrication it is the foundation of WIP reporting — comparing earned vs billed revenue per active job.
Example
Why it matters
Without per-job cost tracking, profitability shows up only at the company level — and only after month-end. Per-job cost tracking shows the cost picture in real time on the specific job that is consuming or generating the cost, while there is still time to react. It is the foundation that makes variance analysis, gross margin per job and closeout-driven calibration possible.