This is a form of job costing. Under job costing,
executed job is used as a cost unit, whereas under batch costing, a lot of similar units
which comprises the batch may be used as a cost unit for ascertaining cost. In the case of
batch costing separate cost sheets are maintained for each batch of products by
assigning a batch number. Cost per unit in a batch is ascertained by dividing the total cost
of a batch by number of items produced in that batch. Such a method of Costing is used in
the case of pharmaceutical or drug industries, ready-made garments, industries manufacturing
electronic parts of T.V., radio sets etc.
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