The characteristics of batch costing are as follows

The characteristics of batch costing are as follows:

1. The cost accounting object is the product batch. This method is also called order method because most of the batches of products are determined according to sales orders. The object of cost accounting is the product batch ordered by the buyer in advance or stipulated by the enterprise.

2. The calculation of product cost is closely related to the release and end of production task notice, so the calculation of product cost is irregular. The cost calculation period is basically consistent with the product production cycle, but it is inconsistent with the financial reporting period.

3. Because the cost calculation period is basically consistent with the production cycle of the product, there is generally no problem of sharing the cost between the finished product and the product when calculating the product cost at the end of the month.

4. Batch method refers to a method of collecting and distributing production costs and calculating product costs by taking product batches as the object of product cost accounting. Suitable for: single piece and small batch production enterprises, such as shipbuilding, heavy machinery manufacturing, precision instrument manufacturing, etc. It can also be used for trial production of new products, projects under construction and equipment maintenance in general enterprises.

5. The cost calculation object of the batch method is the buyer's order or internal order or the product batch specified by the enterprise in advance, and a product cost calculation sheet is set for each order or each batch of products. Direct costs that can be divided by order or batch can be directly included in the relevant cost items of each product cost calculation sheet; For indirect costs with unclear orders or batches, they should be collected according to the place of occurrence and distributed among beneficiaries according to certain standards.