Batch costing is not a form of specific order costing.

Batch costing is not a form of specific order costing.

• A. True
• B. False
• C. Not sure
• D. It depends on batch size

Answer: (B)

Costs are collected for each batch as a single cost object, and in practice each batch is treated as a distinct job or order. Because of that, batch costing assigns costs to that specific batch just as job (specific order) costing does. This makes batch costing a form of specific order costing, not something separate. For example, a batch of 200 units might incur materials 500, labour 300, and overhead 200, giving a total batch cost of 1000 (cost per unit would be 1000 divided by 200, if needed). The emphasis is on cost accumulation by defined batches rather than a continuous process, which aligns batch costing with specific order costing.

Costs are collected for each batch as a single cost object, and in practice each batch is treated as a distinct job or order. Because of that, batch costing assigns costs to that specific batch just as job (specific order) costing does. This makes batch costing a form of specific order costing, not something separate. For example, a batch of 200 units might incur materials 500, labour 300, and overhead 200, giving a total batch cost of 1000 (cost per unit would be 1000 divided by 200, if needed). The emphasis is on cost accumulation by defined batches rather than a continuous process, which aligns batch costing with specific order costing.