Batch Costing
To device job costing, many procedures and methods are required. Batch costing is one of the parts which are used for creating job costing. When a production comprises of repetition of a finite work or a certain number of articles, batch costing is carried out. A production is performed on the basis of specific order which comes under job costing.
Irrespective to job costing, any production in batch costing involves product manufacture, and they are kept as stocks. When these stocks are in demand, they are sold.
When each order number is calculated, the totality of the batch cost can be found out. When the total cost is divided by the total batch quantity,the rate of production per unit can be determined by it.
Links of Previous Main Topic:-
- Introduction to accounting and branches of accounting
- Preparation of final accounts
- Introduction of fund flow statement
- Introduction cash flow statement
- Ratio analysis significance of ratio analysis
- Fixed assets and depreciation meaning causes objectives methods and basic factor
- Cost accounting concept objectives advantages limitations general principles and cost sheet
- Job costing
- Limitations of job order costing
- Batch costing
Links of Next Finance Topics:-
- Test questions in job costing
- Activity based costing introduction concept and classification
- Introduction inventory pricing and valuation
- Standard costing introduction
- Management accounting
- Marginal costing
- Relevant cost for decision making
- Budget and budgetary control
- Limitations of historical accounting
- Introduction to responsibility accounting
