Cost Management in a small family rural property:

analysis of variable costing and absorption in corn and soybean production

Abstract

The study aimed to analyze the variable costing and absorption costing tools in a small rural property, located in the Municipality of Barbosa Ferraz, State of Paraná, in an area of 7.26 Hectares, on the production of Corn and Soybean, crop 2020/2021. The data for carrying out the research were obtained through interviews with the rural producer, reports issued by the cooperative in which the producer buys inputs and sells his production, and through reports issued by the bank. With regard to research methods, it was classified as descriptive, applied, the approach to the problem was developed by the mixed method, considered an ex-post facto research and the research environment was the field. It was concluded that the producer obtained a higher total cost in soybean production than in corn production. In relation to income statements, soy obtained greater profitability with the same result in both costing methods. With regard to the accounting break-even point for soybeans, it was observed that it is the amount of 123.75 bags and the amount of 272.48 bags for corn. In relation to the economic balance point, the number of 843.73 bags of soybeans and 1,681.57 bags of corn was obtained. Operating leverage revealed that soybeans had the highest profitability compared to corn. The research made it possible to demonstrate the importance of cost management in the agricultural production of small rural properties, generating information that contributes to the rural producer.