Batch cost

Batch cost is the cluster of costs incurred when a group of products or services are produced, and which cannot be identified to specific products or services within the group.

For cost accounting purposes, it may be considered necessary to assign the batch cost to individual units within a batch. If so, the total batch cost is aggregated and divided by the number of units produced to arrive at a unit cost.

Related Courses

Accounting for Inventory 
Activity-Based Costing
Cost Accounting Fundamentals