Comparison of the cost structure of rice cultivation with activity-based costing method in Chaiyaphum province

Abstract

The objectives of this research were to study the cost structure of rice cultivation with the activity-based costing method and to compare the cost structure of rice cultivation with the activity-based costing method in Chaiyaphum Province. The sample of this research was 50 rice farmers in Ban Khwao District and 50 rice farmers in Khon Sawan District. A questionnaire was used to collect data. Data were analyzed using descriptive statistics including percentage, average, standard deviation and t-test dependent samples. The results of this study showed that the cost structure of rice cultivation using the activity-based costing system method in Chaiyaphum province consisted of direct material cost, direct labor cost, and production cost. The direct material cost structure of Ban Khwao district was 232,945 baht, meanwhile the direct material cost structure of Khon Sawan district was 167,850 baht. The direct labor cost of Ban Khwao district was 503,600 baht, meanwhile direct labor cost of Khon Sawan district was 473,250 baht. The production cost of Ban Khwao district was 122,610 baht, meanwhile the production cost of Khon Sawan district was 121,320 baht. The comparison of cost structure of rice cultivation with the activity-based costing method of Chaiyaphum Province showed that total cost of Ban Khwao district was 861,605 baht, meanwhile total cost of Khon Sawan district was 764,970 baht. This implied that total cost of Ban Khwao district was higher than that of Khon Sawan district.