Batch-level cost

A batch-level cost is a cost related to a group of units, but which is not associated with specific individual units. For example, the cost incurred to set up a production run is associated with the batch of goods that are subsequently produced. The concept is used to allocate overhead, where batch-level costs are spread among the units in a batch.

Related Courses

Accounting for Inventory 
Activity-Based Costing
Cost Accounting Fundamentals