What is the difference between job costing and contract costing?

Job costing and contract costing are both methods used to determine the costs associated with specific projects, but they differ in their application. Job costing is typically used for individual, customized jobs with distinct specifications, while contract costing is applied to larger, long-term projects, such as construction contracts, where costs are accumulated over the duration of the contract. Additionally, job costing focuses on individual units or batches, whereas contract costing aggregates costs over the entire contract period, often involving multiple jobs and phases.