The practical difficulties that are likely to arise in the implementation of a scheme of inter-firm comparison are: a. The top management may not be convinced of the utility of inter-firm comparison b. Reluctance to disclose data which a concern considers to be confidential c. A sense of complacence on the part of the management who may be satisfied with the present level of profits. d. Absence of a proper system of Cost Accounting so that the costing figures supplied may not be relied upon for comparison purposes. e. Non-availability of a suitable base for comparison. p 40 These difficulties may be overcome to a large extent by taking the following steps: a. 'Selling the scheme through education and propaganda. Publication of articles in journals and periodicals, and lecturers, seminars and personal discussions may prove useful. b. Installation of a system which ensures complete secrecy. C. Introduction of a scientific cost system. 40% Illustration 1 The share of total production and the cost-based fair price computed separately for each of the four units in industry are as follows: R) per unit Share of Production 25% 20% 15% Material Costs 150 180 170 190 Direct Labour 100 120 140 160 Depreciation 300 200 160 100 Other overheads 300 280 240 850 800 750 690 20% return on capital employed 628 430 350 Fair Price 1.480 1.230 1,100 920 Capital employed per unit is worked out as follows: Net Fixed Assets 3,000 2.000 1,600 1.000 Working Capital 140 150 150 150 Total 3.140 2.150 1,750 1.150 Indicate with reasons, what should be the uniform Price fixed for the product. 300 230