Full Product Costs on Base of Farm Accountancy Data by Means of Maximum Entropy
AbstractThe paper presents an approach to allocate joint costs to production branches based on maximum entropy. Using bookkeeping data from the Farm Accountancy Data Network (FADN) we derive full product costs. Accordingly, the suggested approach offers the opportunity of full product costs based on actual costing rather than normal costing. The approach is applied for arable crop in Switzerland providing full product costs on a hectare base. The resulting total costs are up to 20 percent higher than in literature. An important reason is labour, which shows for all analysed production branches higher costs than in the actual costing based literature.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51088.
Date of creation: 15 Jun 2009
Date of revision:
Full Product Costs; Maximum Entropy; FADN; Arable Crops; Farm Management; M41; Q12;
Find related papers by JEL classification:
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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- Yves Léony & Ludo Peeters & Maurice Quinqu & Yves Surry, 1999. "The Use of Maximum Entropy to Estimate Input-Output Coefficients From Regional Farm Accounting Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 425-439.
- Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers 1488, Iowa State University, Department of Economics.
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