Batch size definition — AccountingTools (2024)

What is Batch Size?

Batch size is the number of units manufactured in a production run. When there is a large setup cost, managers have a tendency to increase the batch size in order to spread the setup cost over more units. This can be expensive, if the additional units produced are not immediately used or sold, since they may become obsolete. Consequently, a production system in which batch sizes are reduced is generally considered to be more cost-effective.

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Batch size definition —  AccountingTools (2024)
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