Process Costing

Process costing (as you will know from my free lectures) is costing on a per unit basis when the units pass through several processes, and takes into account until in work-in-progress that are only part finished.

Batch costing is where the units are produced in batches (for example 100 each time) and does not look at work-in-progress (it always treats it as though there is just one big process). We calculate the cost of producing one batch, and then divide by the number in the batch in order to get a cost per unit.