DEFINITION A

group of identical articles when produced as a single job is termed as a batch. The cost of identical articles produced under one batch is ascertained under BATCH COSTING. Batch Costing is also used in printing, packaging articles, buildings, Engineering components etc.

 Batch

costing maybe used in the following ways When the output of the job consist of a number of units, it is not economical to ascertain cost of every unit of output independently When customers annual requirement is to be supplied in uniform quantities over the year.

 When

certain physical characteristics the like size, colour, taste, quality etc are required uniformly over a collection of units. For example garment of the same size, pharmaceuticals etc. When an internal manufacturing order is made out for production of components/ sub parts, for e.g. Components parts of radio sets, watches, etc