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Uniform Costing
It is a general system utilizing agreed concepts, standard and principles accounting practices adopted via different entities in the similar industry to ensure that they all deal along with accounting information in a same manner so as to facilitate inter-firm comparison.
The objectives of uniform costing are as:
a. To promote uniformity of costing processes, hence valid costs comparisons can be made among same organizations
b. To eliminate inefficiencies and promote good practice revealed via the cost comparison.
c. Serve like a basis for government grants or subsidies that weed similar costing systems to ensure equitable distribution.
d. Serve like a basis for competitive bidding.
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