Making managerial decisions in the agrarian management through the use of ABC-Analysis tool
Article Sidebar
Main Article Content
صندلی اداریAbstract
The current paper is focused on material resources as a controlling factor in crop production. It has been found that according to the analysis of crop production expenditures in agricultural enterprises of Ukraine an expense structure consists of approximately 70% of material costs. In this regard, the ABC-analysis is utilized with the aim to determine the items of material expenses that significantly affect the cost and consequently the process of operational management for making decisions. The findings of the ABC-analysis of material expenditures for crop production in terms of elements at Ukrainian agricultural enterprises made it possible to determine the types of control (systematic, periodic, selective) that should be applied for different cost groups focusing on the most significant items of the material expenses. Expenditures are classified according to the stages of the technological process and types of the technology for crop cultivation, allowing to control the scope of production costs at each stage of crops growing. These stages can be the basis for the application in the system of cost management of Activity Based Costing model. It is proposed to apply the operational control of material costs through the budgeting system in the agrarian management. It plays a leading role in the management system providing the process of managerial decisions making with the operative information about the actual indicators of material costs and their deviations. A form fragment of a flexible budget on material expenditures for winter wheat production has been elaborated. The enterprise managers can make operational, current and strategic management decisions and, consequently, influence the change of material resources, adjusting them to the technological processes stages in production and sales of goods, works and services based on the proposed form of a budget.
Downloads
Article Details
1. Proposal of Policy for Free Access Periodics
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
Proposal of Policy for Periodic that offer Postponed Free Access
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
Version of the article that can be deposited in the repository:
Pre-print: before being reviewed by pairs.
Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.
References
ACKOFF, R. L. (1981) Creating the corporate future: Plan or be planned for. New York: John Wiley & Sons.
ACKOFF, R. L. (2002) Ackoff about management (Transl. by L. Volkova). SPb.: PITER, 2002. 448 p. Available: akoffomenedjmente2002.djvu.
ARENA, M.; AZZONE, G. (2005) ABC, Balanced Scorecard, EVA™: an empirical study on the adoption of innovative management accounting techniques. International Journal of Accounting, Auditing and Performance Evaluation, v. 2, n. 3, p. 206-225.
BHIMANI, A.; HORNGREN, C. T.; DATAR, S. M.; FOSTER, G. (2008) Management and cost accounting. 4 th edition. Prentice Hall.
BODRYAKOV, R. (2005) ABC – analiz dlia povysheniia effektivnosti raboty sklada [ABC analysis for increasing the effectiveness of warehouse work]. Skladskiie operatsii, n. 1, p. 36-39.
CARLI G.; CANAVARI, M. (2013) Introducing Direct Costing and Activity Based Costing in a Farm Management System: a conceptual model. Procedia Technology, n. 8, p. 397-405. Available: https://pdfs.semanticscholar.org/e0cf/ 265692c8b540037cde33235cd2461b0a5a2b.pdf.
DRURY, K. (2008) Management & Cost Accounting. Thomson, 7th Edition, ISBN 7981844805662.
FISHER, A. (2008) Metody vydeleniia grupp v ABC-analize [Methods of allocation groups in the ABC analysis]. Logistica i upravleniie, n. 1, p. 29-31.
GONZALEZ-GOMEZ, J. I.; MORINI, S. (2009). A model for cost calculation and management in a multiproduct agricultural framework. The case for ornamental plants. Spanish Journal of Agricultural Research, n. 7(1), p. 12-23. Available: https://pdfs.semanticscholar.org/4933/ca5c735288044928bd18813e5e865991a143.pdf.
GUSEV, S. A.; MAROSIN, V. S. (2015) ABC-analiz v funktsionirovanii transportno-logisticheskih sistem: nekotorye aspekty prakticheskogo primeneniya [ABC-analysis in the operation of the transport-logical systems: some aspects of practical application]. Izvestiya TulGY. Tehnicheskiye nauky, v. 5-1, p. 64-69. Available: https://cyberleninka.ru/article/v/avs-analiz-v-funktsionirovanii-transportno-logisticheskih-sistem-nekotorye-aspekty-prakticheskogo-primeneniya.
HANSEN, D. R.; MOWEN, M. M. (2006) Cost Management: Accounting and Control. 5th edition. Thomson South Western.
HREK, P. V. (2007) Dvukhfaktornyi ABC-analyz po metodyke P.V. Hreka [Two-factor ABC analysis by the method of PV Greek]. Remedyum, 5. Available: http://www.recipe.ru/analitika/dvuhfaktornyiy-avs-analiz-po-metodike-p.v.greka.
HUNDAL, M. S. (1997) Product Costing: A Comparison of Conventional and Activity-based Costing Methods. Journal of Engineering Design, 8:1, p. 91-103, DOI: 10.1080/09544829708907954.
KHIZRICH, R.; PITERS, M. (1992) Predprinimatelstvo, ili Kak zavesty sobstvennoe delo i dobitsia uspekha: Vyp. 2: Sozdanye i razvitie sobstvennoho predpriatia [Entrepreneurship, or How to start a business and succeed: Iss. 2: Starting up and developing the own enterprise]. (V.S. Zahashvili, Trans). Moscow: Prohress.
KOUTOUZIDOU, G.; VAZAKIDIS, A.; THEODORIDIS, A.; BATZIOS, C. (2015) A Review of ABC Methodology for Agricultural Sector. Proceedings of the 7th International Conference on Information and Communication Technologies in Agriculture, Food and Environment (HAICTA), Kavala, Greece, 17-20 September. Available: http://ceur-ws.org/Vol-1498/HAICTA_2015_paper3.pdf.
KUMBHAKAR, S.; BOKUSHEVA, R. (2009) Modelling farm production decisions under an expenditure constraint. European Review of Agricultural Economics, Volume 36, Issue 3, 1 September 2009, p. 343–367.
MERCHANT, K. A. (1998) Modern Management Control Systems: Text and Cases. Prentice-Hall, New Jersey.
NACHTMANN H.; NEEDY K. L. (2003) Methods for handling uncertainty in activity based costing systems. The Engineering Economist, 48:3, p. 259-282, DOI: 10.1080/00137910308965065.
Osnovni ekonomichni pokaznyky vyrobnytstva produktsiyi silskoho hospodarstva v silskohospodarskykh pidpryyemstvakh za 2014 rik: statystychnyy biuleten [The main economic indicators of agricultural production at agricultural enterprises for 2014: Statistical bulletin]. (2015). Kyiv: Derzhavna sluzhba statystyky Ukrayiny. Available: http://www.ukrstat.gov.ua/druk/publicat/kat_u/publ7_u.htm.
Osnovni ekonomichni pokaznyky vyrobnytstva produktsiyi silskoho hospodarstva v silskohospodarskykh pidpryyemstvakh za 2015 rik: statystychnyy biuleten [The main economic indicators of agricultural production at agricultural enterprises for 2015: Statistical bulletin]. (2016). Kyiv: Derzhavna sluzhba statystyky Ukrayiny. Available: http://www.ukrstat.gov.ua/druk/publicat/kat_u/publ7_u.htm.
PARK, J.; SIMPSON, T. W. (2008) Toward an activity-based costing system for product families and product platforms in the early stages of development. International Journal of Production Research, 46:1, p. 99-130.
POCKEVICIUTE, R. (2008). Case study: Activity based budgeting at agricultural holdings in Lithuania. Economics and Rural Development, v. 4, n. 2, p. 26-33. Available: http://erd.asu.lt/erd/article/view/57.
TATARINOVA, M. N.; GRISHANOVA, S. V. (2012) АВС-XYZ-analiz kak effektivnoe sredstvo upravleniya zatratami [ABC-XYZ-analiz as effective remedy of management of expenses]. Kant, n. 1 (4), p. 29-31. Available: https://cyberleninka.ru/article/n/avs-xyz-analiz-kak-effektivnoe-sredstvo-upravleniya-zatratami.
UPCHURCH, A. (2003) Management accounting: principles and practice. (Transl. by Ya. Sokolov; I. Smyrnovа). Moscow: Finansy i statistika.
Vytraty na vyrobnytstvo produktsiyi silskoho hospodarstva v silskohospodarskykh pidpryyemstvakh za 2016 rik. Statistical bulletin [Costs for the production of agricultural products at agricultural enterprises for 2016]. (2017). Kyiv: Derzhavna sluzhba statystyky Ukrayiny. Available: http://www.ukrstat.gov.ua/druk/publicat/kat_u/publ7_u.htm.
ZHENG, X.; CHEN, J.; WANG L.; LI, P. (2018) Application of ABC in small and medium-sized public hospitals: a case study of a maternal and child health hospital. Transformations in Business & Economics, V. 17, n. 3C (45C). Available: http://www.transformations.knf.vu.lt/45c/article/appl.