ECONOMICS

Detailed explanation-1: -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-2: -batch costing. noun [ U ] ACCOUNTING, PRODUCTION. the fact of stating the price of a product as based on the cost of producing a batch of the product, rather than on the cost of producing a single item: Batch costing is typically used for mass-produced goods such as clothing.

Detailed explanation-3: -The formula for batch costing is as follows: Batch Costing = (Total Cost of Goods Produced / Number of Units Produced) x Number of Units in Batch. For example, if the total cost of goods produced is ₹100, 000 and the number of units produced is 10, 000, then the batch cost would be ₹10 per unit.

Detailed explanation-4: -The other factors considered in determining a batch of articles to be manufactured are the capacity of machines, flow of work, treatment of work-in-progress and such other operation factors. The cost per article is obtained by dividing the total cost of batch by the member of articles manufactured in the batch.