What is batch costing?

Answer by  alphids (23)

This is a type of costing where a group of similar products is calculated as an individual job. The cost per unit is arrived at by dividing total batch cost by the number of total units in the batch. Batch costing is not included in the customer invoice for it is meant for internal manufacturing or production costing.

Answer by  idiotjones (705)

It's the price per lot or "batch". The greater the quantity purchased, the less the price per piece. The manufacturer will likely make or process in set batch quantities. When purchased in full batch quantities and at a high rate, the additional costs, such as set up costs are reduced.