Uniform Costing Question:
Tell me why is uniform costing implemented?
Answer:
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.
-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.
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