Let us learn about Uniform Costing Manual. After reading this article you will learn about: 1. Meaning of Uniform Costing Manual 2.
Contents of Uniform Costing Manual. A uniform costing manual is a booklet which contains detailed instructions to be followed by various firms in an industry in connection with cost determination and control.
It is a formal document which lays down the recommended cost accounting plans, policies and other related matters, so that system can be operated effectively. A typical uniform costing manual details the objectives and the method of its administration and the procedure to be followed for regular collection, analysis and reporting of cost data and their interpretation to the member units.
The introduction part of the manual may include the statement of objectives and the purpose of the system, scope of the system, advantages to be derived, educating the management to appreciate the system, and the extent of cooperation necessary.
This part will include the organisation for developing and operating the system and the stages in which the system is to be introduced. These include general principles of accounting adopted, nature of coding system, terminology to be used and classification and description of accounts.
The manual should also include essential details regarding material, labour and overhead costs, collection and control. It must contain detailed instructions regarding presentation of data.
There must be adequate provision regarding forms and contents of statements to be prepared and dates of submission, reports to shareholders and management, operation and production costs, cost and financial ratios and supplementary information. Thus a well written uniform costing manual is an essential prerequisite to the effective implementation of a uniform costing system.
It helps the managements of various firms in an industry in understanding the cost policies and practices to be followed.
Uniform Cost Search
Top 10 Applications of Cost Reduction Methods. Uniform Costing: Features and Scope and Objectives.