Comparing Batch Costing with Job Costing

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The table below highlights the key differences between batch costing and job costing.

Batch Costing Job Costing
When identical products are produced in large numbers, batch costing is used. When products produced in every batch are unique, job costing is used.
Costs are estimated for a batch or group of products. Costs are estimated for every job or order.
These are meritorious when economies of scale exist. It minimises the overall cost per unit. These are meritorious when every customer’s order is different. It is more accurate.
The cost is fixed for every batch, irrespective of the number of units produced. The costs can be varied based on the job requirements.
Distinguishing Batch Costing and Process Costing
Let’s look at the key differences between batch costing and process costing.

Batch Costing Process Costing
Used during the production of a large number of identical products. Used guatemala phone number list when products or services produced are standardised or subjected to continuous flow production.
Costs are gathered for every lot or batch. Costs are accumulated for every single stage of the production process.
Every batch is uniquely identified and different from the other. The products made are uniform.
The total cost incurred is divided by the number of units produced to determine the cost per unit. The total cost incurred at every stage is divided by the number of units produced in that period to determine the cost per unit.

The metric used to analyse and estimate the cost of creating a batch of goods is called batch costing. Using cost per unit generated while distributing overhead costs based on the quantity produced is a key component of batch costing. The primary advantage of this metric is its straightforward computation, which provides an accurate estimation of the manufacturing cost.