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Use of the activity-based costing methodology (ABC) in the cost analysis of successional agroforestry systems
- Source :
- Agroforestry Systems. 94:71-80
- Publication Year :
- 2019
- Publisher :
- Springer Science and Business Media LLC, 2019.
-
Abstract
- Facing increasingly competitive market demands, producers must act as managers of their property, knowing the strengths and bottlenecks in production systems. In this perspective, there is a methodology activity-based costing system (ABC), a cost management tool, used when there is a mix of products, to determine the unit costs of production. This work aimed to apply the activity-based costing system to activities in a successional agroforestry system, that produces nine products. The methodology was applied to the indirect costs of the system. When applying the methodology, it was found that maize and okra products presented negative contribution margins, showing that the respective production costs exceed the sale value of the product. The other products had positive contribution margins, with emphasis on yam and strawberry. The ABC system is efficient for management and administration of agroforestry enterprises.
- Subjects :
- 0106 biological sciences
Agroforestry
business.industry
Cost accounting
Forestry
04 agricultural and veterinary sciences
01 natural sciences
Product (business)
Indirect costs
Work (electrical)
Agriculture
040103 agronomy & agriculture
0401 agriculture, forestry, and fisheries
Production (economics)
Perfect competition
Activity-based costing
business
Agronomy and Crop Science
010606 plant biology & botany
Subjects
Details
- ISSN :
- 15729680 and 01674366
- Volume :
- 94
- Database :
- OpenAIRE
- Journal :
- Agroforestry Systems
- Accession number :
- edsair.doi...........410847ac6f8514ae23cbcc947f1941b6