ECONOMICS

Detailed explanation-1: -It is an extension of job costing. A batch is a group of identical products. All the units in a particular batch are uniform in nature and size. Hence each batch is treated as a cost unit and costed separately.

Detailed explanation-2: -Batch Costing: This is an extension of job costing. A batch may represent a number of small orders or group of identical products passed through the factory in batch. Each batch is treated as a cost unit and cost is ascertained separately.

Detailed explanation-3: -Batch costing is a type of specific order costing where articles are manufactured in predetermined lots known as batch. Here each batch is treated as a separate cost unit and cost are accumulated and ascertained for each batch. A batch consists of number of units which are processed simultaneously.

Detailed explanation-4: -Batch costing is a form of job costing in which a batch of identical products is taken as the cost unit. A convenient batch of production is treated as a job. Then the batch cost is used to determine the unit cost of articles. It is a modification of job costing.

Detailed explanation-5: -In job costing, the cost of each unit is derived after the completion of each job. On the other hand, in batch costing, the cost per unit is derived by dividing the total cost of the batch buy the number of items in the batch.