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Batch costing – meaning

Batch costing is another form of job costing which is adopted in case of manufacturing of a large number of components of machines or of other articles. Since a large number of them are manufactured together and pass through the same process of manufacture, it is convenient to collect their cost of manufacture together. Separate job cost sheets are maintained for each batch of products. Each batch is allotted a number. Material requisitions are prepared batch-wise, the direct labour is engaged batch-wise and the overheads are also recovered batch-wise. Cost of each component in the batch is then determined by dividing the total cost by the number of articles manufactured

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