Uniform Costing Interview Question:

Tell me why is uniform costing implemented?

Submitted by: Administrator

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.
Submitted by: Administrator