Batch Level Activity
What is a Batch Level Activity?
A batch-level activity is an activity involved in the manufacture of a batch of goods.
![bla 1.5](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-1.5.jpg)
How it Works
In manufacturing, products are made in batches.
![bla 2](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-2.jpg)
Raw materials are taken out of inventory and pass through a series of stations where they are processed.
![bla 3](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-3.jpg)
This process continues until the batch is completed.
![bla 4](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-4.jpg)
After this, the production machines are set up for a new product —and the process starts over.
![bla 5](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-5.jpg)
A batch-level activity is an activity involved in this process.
![bla 6](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-6.jpg)
For example, the manufacturer may use a series of machines in the process.
![bla 7](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-7.jpg)
Setting up these machines is an example of a batch-level activity.
![bla 8](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-8.jpg)
The machines are set up for the current batch, only.
![bla 9](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-9.jpg)
Maintenance is another batch level activity.
![bla 10](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-10.jpg)
Quality assurance is yet another batch level activity.
![bla 11](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-11.jpg)
All of these activities can be assigned as direct costs to the total batch.
![bla 12](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-12.jpg)
Batch level activity is just one of the activities involved in an activity based costing system.
![bla 13](https://seeaccountingnow.online/wp-content/uploads/2021/08/bla-13.jpg)
© R.J. Hickman 2020