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Advantages of Uniform Costing

 The advantages accruing from the use of uniform costing system are as follows :-

1.  The management of each firm will be saved from the exercise of developing and introducing a costing system of its own.

2.  A costing system devised by mutual consultation and after considering the difficulties and circumstances prevailing in different firms is readily adopted and successfully implemented.

3.  It facilitates comparison of cost figures of various firms to enable the firms to identify their weak and strong points besides controlling costs.

4.  Optimum achievement of efficiency is attempted by all the firms by utilising the experience of other concerns in the industry.

5.  Standing in the industry of each firm will be known by making a comparison of its cost data with others.

6.  Services of cost consultants or experts may be available jointly to each firm in the industry by sharing their experiences and expenses.

7.  Research and development benefits of bigger firms may be made available to smaller firms.

8.  It helps in the reduction of labour turnover, as a uniform wage system is the precondition of a uniform costing system.

9.  It helps Trade Associations in negotiating with the Government for any assistance or concession in the matters of taxation, exports, subsidies, duties and prices determination etc.
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