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CMA Intermediate · Cost Accounting · Batch Costing

In batch costing, the cost unit for which costs are accumulated and ascertained is best described as:

The cost unit in batch costing is a batch, meaning a group of identical or similar products produced together as one lot. Costs are collected for the whole batch and divided by the number of good units to get cost per unit, unlike job costing, which tracks a single unique order.

  1. AA single customer order of unique specification
  2. BA group of identical or similar products produced together as one lotCorrect
  3. COne continuous process period such as a month
  4. DOne unit of service rendered, such as a passenger-km

Explanation

Batch costing treats a lot of identical or similar articles that move through production together as the cost unit. A single unique order is job costing, a period of continuous production relates to process costing, and service units belong to operating costing.

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