When using an activity-based costing system,a batch-level cost must have a batch-level cost driver.

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Batch-level costs are costs that occur every time a batch of products is produced or a service is performed. Examples of batch-level costs include batch setups, quality inspections, and batch scheduling. Batch-level costs must have a batch-level cost driver, which is a factor that causes or influences the incurrence of batch-level costs. For example, the number of batches produced, the number of setups required per batch, or the number of quality inspections performed per batch could be batch-level cost drivers. Activity-based costing system allocates these costs to products or services based on the respective cost driver used.

When Using an Activity-Based Costing System,a Batch-Level Cost Must Have