Issues of Improving Expense Tracking and Calculating Prime Cost in Agriculture

Abstract

Objectives : This article is devoted to the consideration of the issues of cost accounting and cost calculation in agriculture. In addition, the article highlights the issues of the correct distribution of costs by cost items and objects, as well as the correct calculation of the cost of Uzbekistan's products. In addition, Uzbekistan is an agrarian country, so the article presents suggestions and recommendations for improving the accounting of costs and production costs in agriculture. Previous studies in this area conducted in other parts of the world indicate a direct relationship between the indicators of production costs and market indicators; however, based on the features of Uzbekistan, it may be different, given the accounting policy and the specifics of agricultural costs. Methods: A linear regression method to determine the impact of costs and methods of calculating the cost of production was used. Costs are divided into variables and constants. Based on the features of agriculture, simple, advanced, and regulatory methods are used. Each of these methods is associated with variables and regresses individually for each type of agricultural product. Findings: Our results confirm that there are some methods of calculating the cost of production of farms. The results also indicate that the correct determination of the cost of production affects the profitability of these farms. The results obtained indicate that the calculation of the cost of agriculture is an indicator of the profitability of farms in Uzbekistan in the short term. The impact of the change in the cost of agricultural products influences profitability, in the end on profit; as it influences the prices of sales of products in the end affect the financial performance of farms. Novelty: The impact of the cost of agricultural products on the profitability of farms is becoming more important than ever before since the negative externalities of cost changes affect the financial performance of farms. Keywords: Farms, Expenses, Cost, Product cost, Accounting register