Uniform Costing

Though, there are numerous cost accounting methods & practices. But in order to compare various units in the same organization or different units in the industry, a new method of cost accounting is used which is called Uniform Costing.

By using uniform costing, we are able to compare the overheads, expenses, activities & profitability etc.

Actually, it is a combination of one or more cost accounting method used by all the undertakings to make the comparison easy and useful. This helps greatly in decision making process.

If an organization is a large one and includes several business units, then uniform costing can be used to compare these units and find the bottleneck issues/ limiting factors causing the lower profitability in any or all business units.

Objectives of Uniform Costing

There are numerous objectives of this costing technique:

1. It prohibits the cut throat competition in the industry as each member undertaking in the group is helping others in the fixation of price. So, the customers get the best product in a very reasonable price.

2. It helps in identifying the loss causing activities. As member undertakings help each other in order to improve the performance, any activities that are not performing well can be restructured, re-engineered or eliminated. Here the value chain activities can be analyzed using the data collected from Uniform Costing.

Cost Control - A significant savings can be achieved by correcting the existing activities not are not yielding 100 % output. By uniform costing, the undertakings can also identify unnecessary procedures or processes causing losses in the manufacturing process.

Contents
Financial Ratios Accounting Cycle Accounting Principles Financial Accounting Basics Financial Statements Reporting Bad Debts Current Assets Long-term Assets Voucher System Partnership Depreciation Work Sheet - 10 Column Work Sheet Difference Between Reserve and Fund Accounting for Leases Capital reduction and reconstruction Absorption of Company Amalgamation Accounting for Installment Sales Basis of Recording Profit and Loss Branch Accounting Construction Contracts Revenue Recognition Accounting for Groups Financial Analysis Events After the Balance Sheet Date Deferred Tax Cost Accounting Difference Between Cost Accounting and Financial Accounting Objectives of Cost Accounting Scope of Cost Accounting Classification of Costs Methods of Costing Absorption Costing Pre-determined Overhead Rate Over/ Under Absorbed Overheads Marginal Costing Advantages, Benefits, Pros of Absorption Costing Disadvantages/ Drawbacks of Absorption Costing Advantages of Marginal Costing Disadvantages of Marginal Costing Joint Product Costing Process Costing Practical Difficulties in Installing a Cost Accounting System Elements of Cost Re-Ordering Level Economic Order Quantity EOQ Danger Level Minimum Level Stock Maximum Stock Level Bin Card Stores Ledger Uniform Costing Cost Ratios Benefits of Minimum Stock Level Cost Accounting MCQS - Multiple Choice Questions Multiple Choice Questions on Cost Classification Activity Based Costing (ABC) Throughput Accounting Relevant Cost Break Even Analysis Standard Costing Inventory Management Payroll Accounting Royalty Accounting Statistics Master Budget Salary Income Microsoft Excel Tutorial Other Topics Share or Stock Valuation Model Financial Management Topics Kinds of Endorsement Letter of Credit, Kinds and Its Advantages/ Utilities Modern Functions of a Commercial Banks Difference Between Secured And Unsecured Loan Excel conditional formatting red if negative green if positive How to Remove Extra Spaces in Excel Result Card or Result Sheet Creation Using Excel Basic Accounting MCQS Multiple Choice Questions