What is uniform costing?

Uniform Costing: It is not a distinct method of costing when several undertakings start using the same costing principles or practices, they are said to be following uniform costing. Different concerns in an industry should adopt a common method of costing and apply uniformly the same principles and techniques for better cost comparison and common good and helps in mutual cost control and cost reduction. Hence, it is recommended that a uniform method of costing should be adopted by the member units of an industry.

Objectives of Uniform Costing

i. Facilitates Comparison
ii. Eliminates Unhealthy Competition
iii. Improves Efficiency
iv. Provides Relevant Data
v. Ensures Standardisation
vi. Reduces Cost
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