Obtaining an accurate and adequate knowledge of costs
of production throughout an industry so that prices can be
made intelligently is a most important and commendable phase
of co-operative work, and one that has proven wonderfully
productive.
The advantages accruing to the individual, to an industry,
and to the public, of a uniform method of recording and
reporting costs are many. Where methods are uniform, costs
can be compared and intelligently discussed, differences can
be analyzed, inefficient methods can be corrected, waste can be
eliminated, costs can be reduced and prices can be made in an
intelligent manner. The benefits to be derived from a mutual
education and knowledge of costs of production and distribu-
tion are twofold — economies in operation, and intelligence in
quoting prices. The best known price tonic is an educated
competitor.
It is within the power of an individual business man to
know his own costs of production and the |M-ices he receives
but without co-operation and the interchange of cost and price



UNIFORM COST METHODS 27

data it is impossible for him to accurately gauge either average
costs in his industry or general market conditions. Market
conditions, so far as price is concerned, are the prices com-
petitors are getting. And on this point it is unforttmate that
false reports as to prices quoted by competitors are so widely
current. Often false price reports are given credence and
prices are met which never existed. This practice in the aggre-
gate has a disastrous effect on our commercial health. The
remedy is conoperation w'hich insures fair and honorable com-
petition.
