Revolutionizing Cost Management: Activity-Based Costing Boosts Accuracy in Agriculture
The article discusses how Activity-Based Costing (ABC) can be beneficial for agricultural enterprises by accurately calculating the cost per unit. Traditional cost accounting methods may not accurately reflect costs when indirect costs become significant. ABC assigns costs to products based on actual consumption, helping in pricing decisions and process improvements. The researchers aim to define an ABC model for agricultural production and show its practical significance in cost management. The study finds that applying ABC in agriculture can improve cost accuracy.