You have recently been appointed management accountant of a company which has interests in a number of businesses. One of its major interests is in the hotel business, where it has acquired a number of medium-sized companies, each of which operates its own hotels.

The Chairman of the company has been advised that it would be difficult to operate a system of uniform costing in the hotel group because none of the hotels are alike.

You are required to present a report to the Chairman in which you should discuss the concepts of uniform costing and, in particular, how you would propose to operate such a system in a hotel group.