Example of Agricultural Costs

They are understood as agricultural costs, to all those costs that arise in the movements and agricultural activities.

These costs can be private or public, and have the circumstance of being expenses or investments and can include costs such as:

• Expenses
• Values ​​in goods
• Services
• Managements and processes
• We pay
• Sales etc.

All these movements may be necessary to achieve the desired product or intention.

They have great similarities with business movements and expenses, but focus exclusively on agriculture.

Example of agricultural costs:

In the "Gonzales e Hijos" cattle ranch, owned by Mr. Facundo Gonzales Pérez, the aim is to increase the number of head of cattle from 200 to 1500, and for this they will allocate the profits produced by the products made.

The first thing they needed is to define the daily expenditure on feeding the livestock they have; For this they hired an accountant, and he defined the expense at 1500 pesos a day for the 200 pieces of cattle.

Once the expense has been defined, the accountant recommends acquiring the animals using a loan, putting two tractors as a guarantee and the cost of half of that year's harvest.

In total, among the mutinous money, a total of $ 1,500,000.00 (one million five hundred thousand pesos) was obtained.

The cost of the cattle ranges between $ 4000 and $ 5000 pesos and to acquire the desired animals, they will spend approximately $ 800,000 pesos.

The remainder of this amortized capital will be used to prepare the grazing site as well as the rental of grazing land.

To obtain the total agricultural cost, expenses G, amortizations A and interests I were added to obtain the corresponding total.