Demerits of implementing Uniform Costing
Write down the demerits of implementing Uniform Costing?
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There are few demerits of implementing Uniform Costing. The main demerits are illustrated below: -As the situations in that firms manage are various, thus it is not easy to have uniform standards, processes of costing. -The techniques and practices followed through different units in the industry differ from one unit to any other. -Cost of operation and installation of uniform costing system are elevated for small units therefore they can’t afford it. -If any reservation is made while giving positive information then the statistics accessible can’t be relied upon. -It might build circumstances which might lead to monopolistic tendencies consequential in curtailed supplies and higher prises.
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