Are there any disadvantages of implementing Uniform Costing? If yes, what?
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:
- As the circumstances in which firms operate are different, thus it is difficult to have uniform standards, procedures of costing.
- The practises and methods followed by various units in the industry vary from one unit to another.
- Cost of installation and operation of uniform costing system are high for small units thus they cannot afford it.
- If any reservation is made while giving certain information then the statistics presented cannot be relied upon.
- It may create situations which may lead to monopolistic tendencies resulting in higher prises and curtailed supplies.
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