Costing Agreement

Summary of Costing Agreement

An arrangement among firms in a given line of business to exchange information on production costs or to employ uniform methods of accounting. The object of the arrangement is to standardize costing practices within the industry, thereby eliminating or minimizing price competition. Agreements to exchange cost information may be viewed as collusion under the antitrust laws and, as such, constitute a criminal offense.

(Main Author: William J. Miller)