Uniform Costing Interview Question:

Do you know any disadvantages of implementing Uniform Costing?

Submitted by: Administrator

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.
Submitted by: Administrator