Problematics of allocation of indirect manufacturing costs in agribusinesses: evidence from Lithuania

Abstract

In the light of digitalization of the agricultural processes and implementation of innova-tions in technology, the indirect manufacturing costs have been increasing and becoming more complex to control and properly allocate to specific products . Despite the abundance of research investigating the cost accounting methods, cost classification, and indirect cost allocation to the cost accounting objects (Kontsevoy, et al ., 2020; Gadžo, Lalić, 2019; Tomi-nac, Jakopiček, 2019; Frecăuțeanu et al ., 2018; Oldman, Tomkins, 2018; Drury, 2015; Horn-gren, et al ., 2012; Bogdanoiu, 2012; and others), however, the analysis of practical applica-tions is underdeveloped, there is a lack of systematic analysis on the potential defining role of different decisions on indirect cost allocation in relation to the performance results .Research aim: to identify the problems of allocation of indirect manufacturing costs and reveal the effect of the cost allocation alternatives on the performance results following the analysis of scientific research and practical experience of the Lithuanian agricultural entities .Research object: allocation of indirect manufacturing costs between agricultural entities conducting agricultural operations .Research methods. The methods of logical analysis and synthesis, questionnaire survey, case analysis, comparison and logical abstraction were used in the research .