Costs classified as batch-level costs should depend on the number of batches processed rather than on the number of units produced,the number of units sold,or other measures of volume.

Question

Quizplus · Accepted Answer

Batch-level costs are costs that are incurred for each batch produced, regardless of the number of units within the batch. These costs include things like setup costs, inspection costs, and other costs associated with producing a batch. Therefore, they should be dependent on the number of batches processed, rather than on the number of units produced or sold.

Costs Classified as Batch-Level Costs Should Depend on the Number