Batch production is a manufacturing method used in where production has to be
controlled and managed by batch to batch. Process oriented manufacturing units
in sector like pharmaceuticals, food, paints, FMCG and chemicals are mainly
operating through batch production methods. Right from the batch planning,
production process may involve deferent stages of operation in between starting
to final stage, ie finished goods. In each stage production process may derives
some semi finished products then added to additional raw material or ingredients
and clubbing semi finished products together then to next stage. This process
will continue up to the finished goods. We can analysis the costing factors of
each batch along with the raw material consumption. as in each stage of
operation there may be cost additions such as material cost, machinery cost,
factory overheads and man cost etc.