Batch Level Cost

A batch-level cost is a cost associated to a batch level activity.

With activity based costing, there are several levels.

For example, packaging is a unit level cost.

Unit level costs are those overheads that can be applied to each unit.

Batch level costing is where overheads can only be applied to the entire batch.

For example, machine setup costs can’t be applied to individual units.

It can only be applied to the entire batch.

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