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.


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