Batch costing is similar to job costing in that each batch of similar articles is separately identifiable.

Related MCQs

• Specific order costing methods are appropriate for organizations which produce cost units which are separately identifiable from one another.
• The cost per unit manufactured in a batch is the total batch cost divided by the number of units in the batch.
• The point at which joint products and by-products become separately identifiable is known as:
• In a costing system, a job account is similar to a work in progress account, except that it is for one job only. In a company that specialises in jobbing work, the work in progress account is the total of all the individual job accounts.
• In Job costing a cost is calculated for each individual job, and this cost can be used to establish the profit or loss from doing the job.
• Job costing is a costing method applied where work is undertaken to customers’ special requirements and each order is of comparatively short duration.
• In job costing each job is given a unique:
• A job costing system is usually based on absorption costing principles, and in addition a cost is included for non-production overheads.
• The job costing method can therefore be applied in costing batches. The only difference is that a number of items are being costed together as a single unit, instead of a single item or service.
• Overhead absorption is the process whereby overhead costs allocated and apportioned to production cost centres are added to unit, job or batch costs.