Making managerial decisions in the agrarian management through the use of ABC-Analysis tool

摘要

The current paper is focused on material resources as a controlling factor in crop production. It has been found that according to the analysis of crop production expenditures in agricultural enterprises of Ukraine an expense structure consists of approximately 70% of material costs. In this regard, the ABC-analysis is utilized with the aim to determine the items of material expenses that significantly affect the cost and consequently the process of operational management for making decisions. The findings of the ABC-analysis of material expenditures for crop production in terms of elements at Ukrainian agricultural enterprises made it possible to determine the types of control (systematic, periodic, selective) that should be applied for different cost groups focusing on the most significant items of the material expenses. Expenditures are classified according to the stages of the technological process and types of the technology for crop cultivation, allowing to control the scope of production costs at each stage of crops growing. These stages can be the basis for the application in the system of cost management of Activity Based Costing model. It is proposed to apply the operational control of material costs through the budgeting system in the agrarian management. It plays a leading role in the management system providing the process of managerial decisions making with the operative information about the actual indicators of material costs and their deviations. A form fragment of a flexible budget on material expenditures for winter wheat production has been elaborated. The enterprise managers can make operational, current and strategic management decisions and, consequently, influence the change of material resources, adjusting them to the technological processes stages in production and sales of goods, works and services based on the proposed form of a budget.