Uniform Costing Question:
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Do you know any disadvantages of implementing Uniform Costing?
Answer:
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.
-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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