Methodical bases of graduation of indicators of efficiency of realized production in agriculture

Dmitrii Parmacli, Larisa Soroka, Liudmila Bakhchivanji

Abstract


Purpose. The purpose of the paper is to develop and propose a methodology for grading the degrees of efficiency of sales in agriculture and, on this basis, to provide lecturers and students of higher educational institutions, as well as industry specialists, with modern methodological tools for its implementation, which includes using non-traditional methods.

Methodology / approach. During the study, general scientific and special methods were used, namely, abstract-logical method to study and identify the characteristics of indicators of the effectiveness of products sold, as well as to establish the relationship between them; statistical-economic method – for the analysis of the existing indicators of production and sales of major crops at a particular agricultural enterprise; analysis and synthesis – to identify the levels of cost recovery at the selected enterprise and their graduation. The dynamics of the analyzed indicators for 2013–2017, as well as their average annual values, are graphically presented.

Results. The study identified the main economic indicators characterizing the efficiency of the produced and sold products and established the relationship between them, while at the same time emphasizing the key importance of cost recovery. Based on the carried out mathematical calculations, it is shown how both the profitability of the sold products and the cost recovery depend on the value of the selling price and on the specific variable costs. The article substantiates the gradation of cost recovery indicators based on six levels: critical, minimal, moderate, rational, optimal and high. For each level, a formula is given for their determination. On the basis of real data of production and sales of wheat, barley, peas, corn and sunflower of a specific agricultural enterprise, the calculations of indicators of cost recovery for each level were made.

Originality / scientific novelty. The presented gradation of indicators of cost recovery and the method for their determination are introduced for the first time. For clarity and ease of use, they are presented in a special table.

Practical value / implications. The foregoing allows us to state that it is not correct to estimate the economic assessment of the achieved indicators of the efficiency of sold products based on the comparison of their absolute values. Studies have shown that such an assessment should be carried out on the basis of a comparison of the actual values of the profit gained per unit area with the values of fixed costs for each crop separately. The proposed technique is easy to use and therefore is available for widespread use, both for education and production purposes.


Keywords


profitability; sales price; fixed and variable costs; revenue; crop yield.

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