'n Prinsipiële beskouing van boerderykosteberekening en boerderybestuur : 'n gevallestudie

Abstract

INTRODUCTION A fundamental study of farm management and farm cost accounting - a case study. Modern agriculture is characterised by increasing application of commercial principals. In the process more and more farms are becoming business orientated enterprises which use purchased inputs in increasing quantities to produce marketable products. This increasing emphasis on commerce exposes farmers to greater commercial risks, and through planning and management, have become equally important in the fanning industry as in any other type of busines enterprise. Today's farmer requires a considerable business acumen. Those who do not meet this requirement find it very difficult to continue fanning and they are often forced by economic factors to leave agriculture. CHAPTER l The study deals with a relatively large farming enterprise in the Western Transvaal, situate in the district of Lichtenburg. This specific concern was identified and selected as a model for this case study due to the fertile circumstances for developing and implementing a sound scientific management system. This chapter briefly outlines the different goals of the study, all of them directed towards the effective integration of sound business principals in the fanning enterprise. CHAPTER 2 The case study covers a period of approximately four years. This chapter provides a broad outline and background of the various aspects of farm management in existance at the commencement of the study. Special attention is given to the problems and shortcomings surrounding these aspects. The absence of a well-organized set of records and accounts becomes apparent and proves to be the major reason for managements' frustration and lack of success. Management evidently recognised that to

remain in business and to achieve profit goals, the enterprise mu st function at optimum efficiency for which of course effective management is essential. Thus the need of a suitably qualified management accountant, adept at the intricate workings of the total management function, was established and acted upon. CHAPTER 3 This chapter describes the various stages through which a integrated financial- and management accounting system was designed and implemented. Special emphasis is placed upon the distinghuishing feature of management accounting, viz. for use in planning and controlling routine and non-routine operations and in forming major plans and policies. Thus the accounting task is directed towards the gathering and reporting of information for decision needs of all kinds. It involves three facets : scorekeeping, attention directing and problem solving. The management function receives due attention as well as the advantages of budgeting as a tool of management. CHAPTER 4 In this chapter a study is made of the present situation, i.e. to establish whether the desired objectives were achieved and to what extent the present managerial functions proves to be effective and successful. CHAPTER 5 Ineffecient management is, from a business point of view, one of the biggest problems facing the agricultural industry. Most of the basic principals for the successful business enterprise are not yet applied to fanning. This chapter provides a philosophical exposition of the basic principals of farm management. Special attention is drawn to the major managerial functions of the scientific manager viz. planning, organising, activating and control.