METHODOLOGY FOR THE FACTOR ANALYSIS OF DIRECT COSTS IN CROP PRODUCTION

Abstract

This article investigates the theoretical and methodological foundations of direct cost analysis in crop production within modern agricultural enterprises. The study is driven by the agricultural sector’s critical role in Ukraine’s economy and the need to enhance cost management efficiency amid market instability, rising material prices, and the widespread adoption of agribusiness budgeting.
The study aims to develop a factor analysis methodology for direct costs in crop production to identify the causes of deviations between actual and planned indicators, thereby supporting managerial decision-making. Methodologically, the research employs scientific generalization, economic analysis, factor modeling, comparison, and a systematic approach.
The research substantiates a system of key indicators for direct cost analysis, including crop area, operations completion degree, resource consumption rates, material prices, tariff rates, and exchange rates. Multiplicative factor models are developed to assess expenditures on fuel, seeds, fertilizers, plant protection, labor, and outsourced services. These models quantitatively evaluate individual factors causing variations from budgeted targets, demonstrated through data from a hypothetical agricultural enterprise.
The scientific novelty lies in providing a comprehensive methodological framework for factor analysis that integrates agricultural budgeting specifics to assess production, technological, and price factors. Practically, the proposed models enable agricultural enterprises to monitor budget execution, identify resource savings, improve production efficiency, and optimize crop production costs.