Question

Ojectives of Uniform Costing? [Provide detail explanation]

Answer 1

The objectives of uniform costing are:

1) To make comparison among several units of the business organisation easier. Since the same accounting principle and method is followed across all the business unit or line of service, it is easier to compare the performance of one unit with the other.

2) To increase the operational efficiency of the organisation by comparing the performance and taking remedial measures accordingly.

3) To impose better cost control techniques.

4) To standardised the cost reporting system which will help the cost accounting department across all the entity, to make better decision and co-operate with other department in an effective way.

5) To ensure compliance in the recording and reporting of cost accounting data.

 

Explanation:

In uniform costing method, the same accounting principle and method is followed across all the concerns under the same management. Due to this the entire costing process can be standardised and the above objective can be achieved.