Introduction to Areas of Uniform Costing
The more significant areas in which uniformity is to be attained can be listed as follows -
1. Adoption and Determination of the 'cost unit', 'cost centres' and 'departments'.
2. Costing method to be employed and cost treatment of the items in the costs.
3. System of Costing.
4. Cost control methods.
5. Accounts and Cost and classification.
6. Methods of Valuation of dissimilar stocks.
7. Bases of absorption and apportionments of costs.
8. Depreciation techniques and rates.
9. Treatments of waste, defectives, spoilage, scrap.
10. Costing period and reporting periods.
11. Treatment of interest on long-term and capital loans.
12. Cost treatment of holiday pay, overtime, etc. items of Labor cost.
13. Treatment of R & D costs.
14. Formats of the cost reports and statements.
15. Codification of cost accounts and reports, statements, etc.
The dissimilar areas to be covered are relies on requirement of uniformity in the reporting and accuracy of the comparison needed through the various units participated in the uniform costing system. So above is only a descriptive list of areas and not a complete one.
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