A model for cost calculation and management in a multiproduct agricultural framework. The case for ornamental plants

J.I. González-Gómez, J.I. González-Gómez, S. Morini-Marrero

Abstract


The business dynamics of the agricultural sector generally call for a system of calculation and cost management that goes beyond output assessment and profit determination, and coordinates a tool that supports the decision-making process, thus facilitating the evaluation of different cultivation techniques, varieties and so on. Accordingly, this paper proposes using a cost model based on activities for calculating and managing production costs in multiproduct firms in the agricultural sector, using ornamental plant cultivation as a case in point. This particular case may be considered extremely difficult in terms of crop variety and likely destinations for the products (commercialization, self-supply, etc.). Consequently, the proposed model is transparent, flexible, simple to apply and understand, and easily adaptable to the peculiarities of firms in the agricultural sector in general.

Keywords


SPAIN; FARMS; PLANT PRODUCTION; ORNAMENTAL PLANTS; FARM MANAGEMENT; COST ANALYSIS; PRODUCTION COSTS; DECISION MAKING; MODELS

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DOI: 10.5424/sjar/2009071-394