The effect of the accounting of heifer calving on profit and assets

Ábel, Ildikó

Keywords: cost accounting, twin product, divisor calculation, equivalence, cumulative accounting, cost allocation

When performing twin product cost account, one faces the question of how to allocate costs to the various products, i.e. what ratio and what methods to apply. Accentuating or cumulative cost accounting allows, also in the case of twin products, to debit costs only to products for which they were actually incurred. When applying traditional equivalence divisor calculation, the costs are allocated using the equivalence rate of 1:8, in accordance with the principles under MF decree 50/1979 (XII. 15.) on the rules of cost accounting for agricultural products and services. A calf, after birth, is removed from the production process of the dairy and becomes part of another process.

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