Accounting · Cost Accounting
Which of the following statements is a primary characteristic of Batch Costing?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is used only when a company produces completely customized single-unit products
- 2It is exclusively designed for service industries such as professional accounting firms
- 3The cost per unit is calculated by dividing the total batch cost by the number of units in that batch✓
- 4Each individual unit in a batch is unique and has its own distinct cost card
Correct answer
The cost per unit is calculated by dividing the total batch cost by the number of units in that batch
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