Thus uniform costing is a useful tool for managerial control, performance appraisal and standardization of operation in the industry. It avoid cut-throat competition. Weaker member units can avail advantage of the efficient methods of production, cost control and the research and development in the field.
Where is uniform costing used?
Uniform costing may be applied advantageously in an organisation having a number of branches, each of which may be a separate manufacturing unit or in a number of units in the same industry bound together through a trade association or otherwise, or industries which are similar like printing press, hotels, sugar.
Which is the basic principle of uniform costing?
Uniform costing is not a distinct method of cost accounting like marginal costing or ABC. It is one of the latest techniques of costing and cost control. It refers to acceptance and adherence of identical costing principles and procedures by all or many units in the same industry by mutual agreement.
What are the disadvantages of uniform costing?
Disadvantages of Uniform Costing Business units belonging to an industry differ from each other. They may be of different sizes, using different methods of production, different costing techniques and producing different volumes of output.
What are the types of costing?
Different Methods of Costing – Single Costing, Job Costing, Contract Costing, Batch Costing, Process Costing, Operation Costing, Operating Costing and a Few Others
- Single Costing, Unit Costing or Output Costing:
- Job Costing:
- Contract Costing or Terminal Costing:
- Batch Costing:
- Process Costing:
- Operation Costing:
What is uniform costing with example?
For example, a firm may recover overheads on the basis of direct wages whereas another may recover overheads on labour hour rate or machine hour rate which may result dissimilarity in costs of the same type of product. Uniform costing depends upon elimination of such differences.
What is costing method?
The method of costing refers to a system of cost ascertainment and cost accounting. Industries differ in their nature, in the products they produce and the services they offer. Hence, different methods of costing are used by different industries.
What is the scope of uniform costing?
It avoids cut throat competition among the member units by fixing a common price which is acceptable to all and thus helps in bringing stability of prices of products. Moreover, selling prices of the products are fixed on the basis of reliable data provided by member units using uniform costing.
