1.
Under batch costing, ___________ products are produced in a continuous production flow in lots.
A
Homogeneous products
B
Heterogeneous products
C
Diversified products
D
Manifold products
E
Customized units
Answer and explanation
Correct Answer: A — Homogeneous products
The correct answer is A: Homogeneous products.
Under batch costing, homogeneous products are taken as the cost unit. A batch consists of a specific number of identical units processed simultaneously. Inputs accumulate in the assembly line until the minimum batch size is reached, after which all inputs in the batch are processed for further operations.