Full Product Costs on Base of Farm Accountancy Data by Means of Maximum Entropy
The 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.
|Date of creation:||15 Jun 2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/Email: |
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
When requesting a correction, please mention this item's handle: RePEc:ags:iaae09:51088. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.