ECONOMICS

Detailed explanation-1: -Business concerns which undertake the production of components or parts in batches adopt batch costing. Under this system, the cost of each batch is ascertained separately. (Batch means of group of similar products/ identical products).

Detailed explanation-2: -A Bicycle is also made of with various parts, therefore multiple costing method is used in the Industry.

Detailed explanation-3: -Batch cost is the cluster of costs incurred when a group of products or services are produced, and which cannot be identified to specific products or services within the group. For cost accounting purposes, it may be considered necessary to assign the batch cost to individual units within a batch.

Detailed explanation-4: -The main costing methods available are process costing, job costing, direct costing, and throughput costing. Each of these methods applies to different production and decision environments.

Detailed explanation-5: -In batch production there will be no work-in-progress, batches are discrete (ie have a start and end) and costs can be specifically traced to particular batches. In process costing, production is continuous: there are no batches.