What are the features of uniform costing?
The essential feature of Uniform Costing is adoption of standardised principles and methods of cost accounting by different units introducing the method. The standardisation may extend to following: 1. Method of Cost Accounting e.g., job costing, process costing or a variation of one or both of these.
What are the features of cost accounting?
Features of Cost Accounting
- It is a sub-field in accounting.
- Provides data to management for decision making and budgeting for the future.
- It helps to establish certain standard costs and budgets.
- provides costing data that helps in fixing prices of goods and services.
What are the basic principles of uniform costing?
The basic idea behind uniform costing is that the different concerns in an industry should adopt a common method of costing and apply uniformly the same principles and techniques for better cost comparison and common good.
What is advantage of uniform costing?
In brief, the advantage of uniform costing system are achievement of greater operating efficiency through common understanding of cost and a competitive spirit introduced by comparison of cost, adoption of realistic pricing policies and establishment of the best methods and principles of costing.
What is the 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’s uniform costing?
Uniform costing is the application of the same accounting and costing principles, methods or procedures uniformly by various undertakings in the same industry. It is a particular technique which applies the usual accounting methods like standard costing, marginal costing, and budgetary control.
What is an important feature of a cost accounting system?
The features of cost accounting involve assessing and recording all costs associated with operating the business. The accounting method is used to assemble and track all costs, while also guiding intelligent business decisions.
What are the essential features of a good cost accounting system?
An ideal system of costing should possess the following characteristics:
- Simplicity. The costing system should be simple to operate and easy to understand.
- Suitability to the Business.
- Economy.
- Elasticity.
- Accuracy.
- Comparability.
- Promptness.
- Reconciliation of Results.
How does uniform costing helps an individual firm?
a. 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.
What are the advantages of uniform system of hotel accounting?
Free exchanges of Ideas and Technology, Knowledge amongst the member hotels/restaurants. The free exchange of information regarding a system of costing stocks, depreciation, etc. The absence of rivalry and sense of jealousy amongst the member hotels/restaurants.
What is uniform costing?
Uniform costing is not a distinct method of cost accounting like marginal costing or ABC. It refers to acceptance and adherence of identical costing principles and procedures by all or many units in the same industry by mutual agreement.
Where is uniform costing used?
In India, it is being used in coal industry, steel industry and fertiliser industry. There is a good scope of using uniform costing system in other industries too.
Why is uniform costing important in the accounting industry?
Uniform costing helps member firms to adopt one of the best methods of cost accounting system known to the industry. This eliminates unsound methods and also saves cost required in perfecting systems through expensive trial and error or experimentation. 2.
Which is not a separate method of cost accounting?
Uniform costing is not a separate or distinct method of cost accounting like job costing or process costing. It is only a system of cost accounting to be used by the members of the industry or trade association.
Why are there different cost structures in different countries?
Difference in Geographical Situation: In a big country regional difference create difference in cost structure of different firms. There may be availability of cheap labour, nearness to raw material, advantage of market and favourable climate to some firms. Many states may offer concessions in power rates, interest rates, tax rates.
Why is it important to control the cost of production?
Control of Cost: It facilitates in arriving at the cost of production for the industry as a whole which is acceptable to several undertakings in the industry. It also helps to control the cost by eliminating the unprofitable ventures and inefficiencies.