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What are the pre-requisites for successful implementation of uniform costing?
The pre-requisites for successful implementation of uniform costing are as follows:
- Firms in the industry should have mutual trust and willingness to share relevant information.
- A spirit of co-operation should be there among the participating firms
- Free exchange of ideas, methods used.
- Bigger firms should take the lead to share with smaller firms, their experience, achievements of efficiency, improvements and know how to enable the later to improve their performance.
- No hiding or withholding of information.
- No rivalry, competition among the competitors.
- Uniformity must be established with regard to several following points before introducing
uniform costing in the industry:
1. Size of the units in the industry
2. Production methods
3. Accounting principles, procedures used
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