Making managerial decisions in the agrarian management through the use of ABC-Analysis tool

Abstract

The current paper is focused on material resources as a controlling factor in crop production. It has been found that according to the analysis of crop production expenditures in agricultural enterprises of Ukraine an expense structure consists of approximately 70% of material costs. In this regard, the ABC-analysis is utilized with the aim to determine the items of material expenses that significantly affect the cost and consequently the process of operational management for making decisions. The findings of the ABC-analysis of material expenditures for crop production in terms of elements at Ukrainian agricultural enterprises made it possible to determine the types of control (systematic, periodic, selective) that should be applied for different cost groups focusing on the most significant items of the material expenses. Expenditures are classified according to the stages of the technological process and types of the technology for crop cultivation, allowing to control the scope of production costs at each stage of crops growing. These stages can be the basis for the application in the system of cost management of Activity Based Costing model. It is proposed to apply the operational control of material costs through the budgeting system in the agrarian management. It plays a leading role in the management system providing the process of managerial decisions making with the operative information about the actual indicators of material costs and their deviations. A form fragment of a flexible budget on material expenditures for winter wheat production has been elaborated. The enterprise managers can make operational, current and strategic management decisions and, consequently, influence the change of material resources, adjusting them to the technological processes stages in production and sales of goods, works and services based on the proposed form of a budget.

Management of agricultural business in war conditions: features of accounting and taxation

“…The authors believe that Ukraine in these circumstances should prepare for a big post-war shock with high inflation, a collapse in GDP and an acute social crisis. Semenyshena et al (2019Semenyshena et al ( , 2020 with her co-authors aim at establishing the presence of a causal relationship between the historical development of the accounting system (its modification) with management revolutions, identification of new characteristic features, and accounting functions arising from changes in management approaches and requirements.…”

Methodic Approach to Assessment of the Types of Balanced Land Use of Rural Areas

“…The concept of LUFs provides an opportunity to clearly identify analytical relations between multifunctional land use and sustainable development (Pérez-Soba et al, 2008). In Ukraine, scientists have also proposed some approaches to ensure effective use of land resources in regions based on the supply of effective market-oriented and environmentally balanced rural areas (Voronkova and Sycheva, 2017;Nuzhna et al, 2019;Shkuratov, 2018;Tretiak et al, 2016).…”