Batch costing
1. It is a refinement of job costing.
2. Here the unit of measurement is batch comprising of lots of similar units.
3. Separate cost sheet are maintained for each batch of products by assigning a unique batch number.
4. Cost per unit in a batch =Total cost of batch/No of units in the batch.
5. Applications :-Pharmaceuticals , drug industry, readymade garments ,manufacture of electronic parts of TV etc.
batch coting
Batch costing means the cost of a product in which various rawmaterial is being used as input along with the labour involved & the electricity consumed in a batch.
producing garments batch by batch, like 100 shirts and 100 trousers.
Batch processing means the production of units of products in continuous process where products units produced without any break and different process of making product continuously keep working and produce in mass quantities. It is different from job costing in this sense that in job costing, costs of separate jobs or projects are kept separate from each other and costing of each job is done separately which is not done in process or batch costing.
Under JOB COSTING all costs relevant to specific jobs are maintained separately to find out the total cost and revenue. Under BATCH COSTING all costs are allocated to production process in batch and there is no separate record for how much any type of material or labor allocated to which units of products normally in mass productions units.
batch coting
Batch costing means the cost of a product in which various rawmaterial is being used as input along with the labour involved & the electricity consumed in a batch.
producing garments batch by batch, like 100 shirts and 100 trousers.
I dont knowJohn key
features of standard costing
Batch processing means the production of units of products in continuous process where products units produced without any break and different process of making product continuously keep working and produce in mass quantities. It is different from job costing in this sense that in job costing, costs of separate jobs or projects are kept separate from each other and costing of each job is done separately which is not done in process or batch costing.
Job costing, batch costing and process costing job costing is used in a business where the production is made up of individual large jobs , each of which is different and has different inputs of materials and labour. batch costing is suitable for a business that produces batches of identical units, but each batch is for different units. process costing is the costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes.
Under JOB COSTING all costs relevant to specific jobs are maintained separately to find out the total cost and revenue. Under BATCH COSTING all costs are allocated to production process in batch and there is no separate record for how much any type of material or labor allocated to which units of products normally in mass productions units.
Mass production focuses on producing large quantities of identical products quickly and efficiently using specialized equipment and assembly lines. Batch production, on the other hand, involves producing a specific quantity of products in a set sequence using standardized processes before moving on to the next batch. Both methods can help companies achieve economies of scale, but mass production is better suited for high-volume production, while batch production allows for more flexibility and customization.
Job Order Costing Operation Costing Normal Costing Actual Costing Standard Costing Kaizen Costing Target Cost
Cost unit is a unit of production, service or time or combination of these, in relation to which costs may be ascertained or expressed. Ex: Toy making: Batch costing, unit of cost: per batch (ex: $500 per batch) Advertising: Job Costing, unit of cost: per Job Hospital: Operating costing, unit of cost: per patient day
The features of differential costing include residual costs, variable costs, future costs, and making choices among alternative.