Project Costing

Project costing in project accounting refers to the process of estimating, tracking, and managing the expenses associated with a specific project. It helps organizations understand how much money is being spent, where it's going, and whether the project is financially on track. This involves identifying direct costs (like materials and labor) and indirect costs (like overheads), and comparing them against the project budget. Effective project costing ensures that resources are used efficiently and helps in making informed decisions to keep the project within its financial limits while achieving its objectives.