By Cedric Lu; V.G. Sridharan and Michael S. C. Tse
Due to the unique nature of agricultural production, costing of agricultural products presents a major challenge to the management of farms and other organisations that involved in agricultural production. Activity-Based Costing (ABC), with its ability to apply non-volume driven cost drivers and disentangle resource costs and cost objects through two-stage allocation process, has the potential to address issues in costing of agricultural products. This paper presents a case study of ABC implementation in a family-owned Australian farm.
The objectives of the study are to develop an understanding on how the ABC model can be implemented in farms and to examine issues associated with the implementation of the ABC model in farms. Findings from the case show that implementing the ABC model in farms is possible with the use of heuristics. Technical factors are found to be dominant over behavioural factors in the development of the ABC-based costing model for the farm.Content reserved for CMA Australia members. Please go to HOME PAGE and log in to see the content. Your Username is your email address registered with CMA Australia. Your Password is you Member Id Number which starts from either MID/CID. This is printed on your certificate/renewal notice/invoice. You are required to input the full Id including MID/CID. User Name:_________________________ (your email address; e.g. email@example.com)Password: __________________________(your CID or MID number without spaces. e.g CID-003015) If you are having problems, members are requested to contact firstname.lastname@example.org to get log in details.