Management Aspects of Production Cost Accounting in Horse Breeding

Abstract

The particular management accounting lines are considered in the present paper, based on the state and current practice of production cost accounting study and calculation of production cost of horse breeding in the analyzed companies, to help the enterprise management in making reasonable decisions regarding maintenance of cost management in the given industry. The criteria of breakeven point, marginal income, and safety edge can be used for production planning, decision-making on pricing for prediction of enterprise development, in particular, the selection of efficient management strategy of benefits and costs. Having analyzed the possible strategies in management of benefits, costs, one can determine the best options for management decisions (increase of price and sales volume of koumiss).

MIM3: Methodology of Innovation Management for Obtaining the Level 3 of I2MM

“…Klychova et al (2015) also explained that: "the purpose of this method is increasing the speed of decisionmaking on pricing and possibility of analyzing the relationship of the costs, volume of production (sales) of products and profit (CVP-analysis) as well as analysis of break-even point" (p. 308). Additionally, Iotti and Bonazzi (2014) explained that "the direct costing assigns only the costs directly attributable to the individual productions, while overhead costs are not allocated and are briefly summarized at the close of the reclassified income statement" (p. 1492).…”

“…About the direct costing, Klychova, Zakirova, Zakirov, and Valieva (2015) indicated that "is intended to include in the cost of production and ending stocks estimate only variable production costs and allocation on financial result of the total amount of fixed costs without distribution by product types" (p. 308). Klychova et al (2015) also explained that: "the purpose of this method is increasing the speed of decisionmaking on pricing and possibility of analyzing the relationship of the costs, volume of production (sales) of products and profit (CVP-analysis) as well as analysis of break-even point" (p. 308).…”

“…For detailing the costs, to elaborate the form "FR-MIM3-009-001 Budget of Outflows of the Innovative Project", please refer to Table 10 in the Appendix. For calculating the net present value, use the form "FR-MIM3-006-001 Financial Evaluation of the Innovative Project" (Chih-Chang, 2013;Klychova et al, 2015;Bibo, 2014;Laudon & Laudon, 2012;Euchner & Ganguly, 2014).…”

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“…Klychova et al (2015) also explained that: "the purpose of this method is increasing the speed of decision-making on pricing and possibility of analyzing the relationship of the costs, volume of production (sales) of products and profit (CVPanalysis) as well as analysis of break-even point" (p. 308). Additionally, Iotti and Bonazzi (2014) explained that "the direct costing assigns only the costs directly attributable to the individual productions, while overhead costs are not allocated and are briefly summarized at the close of the reclassified income statement" (p. 1492).…”

“…About the direct costing, Klychova, Zakirova, Zakirov, and Valieva (2015) indicated that "is intended to include in the cost of production and ending stocks estimate only variable production costs and allocation on financial result of the total amount of fixed costs without distribution by product types" (p. 308). Klychova et al (2015) also explained that: "the purpose of this method is increasing the speed of decision-making on pricing and possibility of analyzing the relationship of the costs, volume of production (sales) of products and profit (CVPanalysis) as well as analysis of break-even point" (p. 308).…”