The Benefits of Activity Based Costing in Costs Management of a Farm Company

Abstract

The article reports a study involved the Activity Based Costing (ABC), whose main objective was identify its benefits in costs management on an agricultural enterprise. Therefore, a literature review was conducted on the concepts related to the study subject and agricultural activity. After that, the methodology used in the research was presented, and is classified as applied, documentary and case study, making use of non-formal interview for the data collection and document verification. The results indicate the advantages found with the use of ABC, which considered ways to drivers of different costs for indirect costs such as time machines in performing activities of agricultural production. This showed that this method is beneficial to managers of agricultural companies for the analysis of activities that require more resources, making them more efficient by investing in training people and applying new mechanization technologies.