Pre-requisites for accomplishment of uniform cost

Question

Write down the pre-requisites for triumphant accomplishment of uniform costing?

Answer 1

The pre-requisites for triumphant accomplishment of uniform costing are illustrated below:

-Firms in the industry must have communal faith and motivation to share relevant information.

-A spirit of cooperation must be there between the participating firms

-Free exchange of thoughts, techniques employed.

-superior firms must take the lead to distribute with smaller firms, their knowledge, accomplishments of effectiveness, improvements and know how to facilitate the later to get better their performance.

-No withholding or hiding of information.

-No challenge, competition between the competitors.

-Uniformity should be recognized with look upon to several subsequent points before introducing uniform costing in the industry:

i) Size of the units in the industry
ii) Production methods
iii) Accounting principles, methods employed