Advantages of uniform costing posted by
Why is uniform costing implemented?
Uniform costing method is implemented due to the following advantages:
-A useful tool for management control as the individual performance is measured
against norms set for the industry as a whole.
-It avoids cut-throat competition.
-Weaker units can take the advantage of the efficient methods of production so
as to increase their own efficiency.
-The achievements in research and development programmes may be shared by the
bigger units with the smaller units.
-Provides the best cost control system or cost presentation in the entire
-It assists in educating the less informed units regarding the cost accounting
-It enables a comparative assessment between the two sectors.
-It helps the government in regulating prices of essential and important items.
-It helps in price fixation.
-It simplifies the work of wage boards to fix minimum and fare wages for an
-It helps trade association in negotiating the government in the trade matters.