 Adoption of  Common Costing Principles  Techniques  Methods & practices  By various firms in the Industry

 Facilitates  better  COST COMPARISION  COST REDUCTION & CONTROL

 Firms in the Industry willing to share, furnish relevant data/information.  Spirit of Cooperation & Mutual trust should prevail among the participating firms.  Mutual exchange of ideas, methods used.  Bigger firms should take the lead towards sharing their experience & know how with the smaller firms.

 Facilitate Inter firm comparison  Eliminate Unhealthy competition  Reduce the cost  Standardise the Cost Accounting methods

 Technique of Evaluating PERFORMANCE, EFFICIENCY,COSTS & PROFITS of Firms in the Industry.  Consists of Voluntary exchange of Information/data relating to COST, PRICE, PRODUCTIVITY & overall Efficiency among firms.

 Creation of a CENTRE for Inter firm comparison.  Membership of Centre.  Identification of Data & Information requirement.  Methods of Collection & Presentation of Data/Information.

 Collection of identified data & information from different units in an Industry.  Dissemination of results to its members.  Undertaking Research & Development for common & individual benefits of its members.  Orgainising Training Programmes & publishing magazines.

 Cost & Cost structure.  Raw materials consumption.  Stock of raw materials.  Wastages.  Labour efficiency & utilisation.  Creditors & debtors.

 Helps a firm in knowing its strengths & weaknesses.  Ensures unbiased & specified reporting to the firm.  Helps to improve the Quality of products.  Helps the Govt. in bringing Price regulation.

 Lack of Confidentiality.  Lack of reliable information and cost data.  Lack of basis of comparison.