A Discourse Regarding the Application Cost Accounting System in Agriculture Farms

Abstract

The practice of cost accounting is essential for business professionals due to its ability to determine the degree to which resources are being exploited most efciently. Cost accounting may differentiate between industries and sectors; hence, the importance of reviewing pieces of literature based on their comparisons had been the prime focus of this particular research. Agriculture represents an important aspect of any economy. However, certain crucial factors make the accounting procedure in a sustainable agricultural rm much undeveloped in nature, which need to be addressed from the base level to generate favorable outcomes in the future. The paper is based on a Systematic Literature Review (SLR) by levying utmost attention on gathering secondary data only. The overall ndings being gathered for this particular research clearly deciphered that the application of cost accounting system in agricultural rms is somewhat distinct from others due to its strong focus on certain crucial factors. A few of these factors were identied as overhead allocation, availability of livestock, and production sizes among others. Specically, as per the ndings being retrieved from the literature review, it certainly became apparent that Activity-Based Costing (ABC) activities in agriculture included signicant and unique differences from the practices of other industries, but there are similarities as well. One of these similarities included maximizing huge prots by making suitable expenses at the end of every scal year. In terms of recommendation, accounting staff working in rural areas should be prepared enough for making effective application of cost accounting mechanism in diverse agricultural rms to generate favorable or positive outcomes.