CMA Intermediate · Cost Accounting · Batch Costing
In batch costing, the cost per unit of a completed batch is obtained by:
Batch cost per unit equals the total cost accumulated for the batch, including materials, labour, expenses and overheads, divided by the number of good units in that batch, because the batch is costed like a single job.
- ADividing total batch cost by the number of units in the batchCorrect
- BDividing total batch cost by the number of batches in the period
- CDividing direct material cost alone by units in the batch
- DDividing the period's total overheads by units sold
Explanation
A batch is treated as a single job; its total cost (material, labour, expenses, overheads) is accumulated and divided by the units produced in that batch. The other options use a wrong divisor or an incomplete cost base.
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