Why is uniform costing implemented?

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 industry.

- It assists in educating the less informed units regarding the cost accounting methods.

- 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 industry.

-It helps trade association in negotiating the government in the trade matters.

What are the pre-requisites for successful implementation of uniform costing?
The pre-requisites for successful implementation of uniform costing are as follows:..
Are there any disadvantages of implementing Uniform Costing? If yes, what?
Yes, there are few disadvantages of implementing Uniform Costing. Following are the main disadvantages: …
What are the areas where uniform costing can be implemented?
The following are the areas where uniform costing can be implemented: In method of pricing the issues…
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That's a brillniat answer to an interesting question
Savion 10-13-2012