Farm Council Case

Running Head : ACTIVITY BASED COSTING

ACTIVITY BASED COSTING AND AGRICULTURAL BUSINESSES

Author

Author 's Information

Abstract

Activity based costing would be advantageous to agricultural businesses It allows businesses to allocate costs to different activity centers and takes note of all modes of consumption . The case of John and Mary Farmer would be a good example of the efficiency of ABC in agricultural businesses . First of all this is because farming follows steps (which are major activity centers ) which are almost the same for every harvest year . There will be

no major variations in the business ' activities unless they opt for major changes in the business type itself Furthermore , ABC also enables the Farmers to keep track of the efficiency of each farm

Activity Based Costing and Agricultural Businesses

Similar to a food chain , all the consumers directly and indirectly depend on the producer . It maybe overlooked by the public but agricultural business are the starting point of all business and progress . These businesses are our producers . For that same reason that the government should aid in the development of agricultural businesses

One way to make moves on developing these kinds of businesses is to look at their management . Management not in the sense of who owns or who handles the business but it pertains to the system which businesses use Owners and handlers can be replaced or can be found lacking over time but a system for work flow of the business can be analyzed and improved for future use...