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Are there any disadvantages of implementing Uniform Costing? If yes, what?
Yes, there are few disadvantages of implementing Uniform Costing. Following are the main disadvantages:
- As the circumstances in which firms operate are different, thus it is difficult to have uniform standards, procedures of costing.
- The practises and methods followed by various units in the industry vary from one unit to another.
- Cost of installation and operation of uniform costing system are high for small units thus they cannot afford it.
- If any reservation is made while giving certain information then the statistics presented cannot be relied upon.
- It may create situations which may lead to monopolistic tendencies resulting in higher prises and curtailed supplies.
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