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Journal: International scientific journal "Internauka." Series: "Economic Sciences" (Vol.2, No. 32)

Publication Date:

Authors : ;

Page : 9-16

Keywords : organic farming; making managerial decisions; accounting and analytical support; modeling; marginal calculation; input output analysis;

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The technique of marginal calculations is based on the principle of marginal costs. It definitely considers the yield (Output), and use of production resources (Input). Its main aim is the definition of on-farm competitive index for the production processes in making decisions in planning. Depending on the applied planning methodology, there are three methods of keeping marginal calculation: methodically valid marginal revenue, marginal calculation by practical method and standard marginal profit. To ensure the efficient management of the market of products of organic farming we need information and its detailing, which helps the formation of decisions adequate to the situation and management tasks. As evidenced by the analysis, the over-saturation of information, as well as its lack, complicates the processing of information flows about the state and prospects of development of the market of products of organic agriculture for the preparation, adoption and implementation of appropriate management decisions. Optimization calculations (program planning, linear programming) require that the marginal revenue is calculated accurately in accordance with economic theory. Methodically actual margin income is the difference between marginal value and marginal expenses. In relation to the individual production process the following questions arise: a) that an amount of additional produce the process brings with the expansion of production by one unit; b) that an expense arises from the expansion of production by one unit. The marginal cost as a rule is easily measurable, because the volume of production increases in proportion to the expansion of production. Basically, when you define a methodically valid marginal income, only the commercial products (revenue from sales) are estimated. Organization of the system of crop rotation in the farms is inextricably linked to the definition of a rational structure of sown areas. Thus, it is necessary to ensure the production of goods in such quantity to fulfill contractual obligations for the sale of products and to provide on-farm needs (seed fund, natural wages fund, forage fund, catering fund, insurance fund, the marketing, repayment of loans to other farms etc.).

Last modified: 2021-03-18 22:06:47