Cost management models in agricultural business

Abstract

Any business, no matter how large it is, cannot work effectively without proper management of production costs. Some aspects of cost management have already been sufficiently studied, but new questions arise related to the industry specifics of cost formation. The paper considers the characteristics of various cost management tools, identifies conditions that restrict their use in agricultural production, justifies the selection of tools that are most adapted to the agricultural sphere of production and current Russian accounting and taxation practices, and presents a model of cost management by responsibility centers. The relationship between production costs and the final results of agricultural production organizations was studied, and potential opportunities for increasing production efficiency were identified. The composition of additional costs for the production of products with improved environmental characteristics is determined, and a method for their separate accounting for the use of various cost management tools is proposed.