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Requirements of Uniform Costing
1. Uniform costing systems must process the given features as:
2. Cost reports and statements should be organized and laid out in a same format hence each element of revenue and cost can be compared quite easily.
3. Accounting periods must be the similar in every firm in the industry.
4. The methods of valuing stocks and work in progress should be the similar.
5. The basis of valuing fixed assets should be the similar.
6. The method and real rates of depreciation for every type of asset must be the similar.
7. The basis of cost or overhead absorption and apportionment must be similar.
8. Cost classification systems must be the similar in all the firms in the industry hence same items are classified in the similar names.
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