ICANManagement InformationJob, Batch and Process Costing2023

Which of the following statements CORRECTLY distinguishes job costing from batch costing?

AJob costing is used only in service industries, whereas batch costing is used exclusively in manufacturing
BIn job costing, each individual job is the cost unit; in batch costing, the entire batch is the cost unit and unit cost is derived by dividing batch cost by the number of units in the batchCORRECT
CBatch costing requires the use of equivalent units to determine cost per unit, whereas job costing does not
DJob costing accumulates costs by process, whereas batch costing accumulates costs by department
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Why the answer is B, and why the others tempt you.
In job costing, a specific customer order or job is the cost unit and costs are traced directly to it. In batch costing, a group of identical items (the batch) is treated as a single cost unit, and the cost per individual item is calculated by dividing total batch cost by the number of units produced. Equivalent units are associated with process costing, not batch costing.
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