Objective of Uniform Costing
The significant objectives of the uniform costing can be stated as follows -
1. To help for meaningful and valid cost comparison between the members.
2. To locate and eliminate inefficiencies in the firm by measuring own efficiency in terms of industry generally and in terms of close rivals in particular.
3. To create healthy competition and stop cut-throat competition.
4. To enhance the productivity of men, machine production methodology and technology.
5. To give uniform data and information to Government for dissimilar purposes such as tax policy, subsidies, restrictions, concessions etc.
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Objectives of Accounting are Systematic recording of transactions, determine of results of recorded transactions and the financial position of the business, giving information to the users for rational decision-making and to know the solvency position.
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The requirement for uniform costing arises since the cost structures and procedures, practices and principles of costing different from firm to firm, business to business and industry to industry.
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