Batch-level activities

Batch-level activities are those actions related to a defined cluster of units. The concept is most commonly used in the allocation of overhead costs to production or service activities. A classic example is the cost to set up a production run; this cost is then assigned to the units produced as a result of that setup. The assignment of costs at the batch level is intended to more precisely associate costs with units produced, so that the items can then be priced to maximize profitability and avoid a loss.