Cluster analysis as a tool for managing and forecasting target cost in poultry organizations

DOI

10.2991/mtde-19.2019.63How to use a DOI?

Keywords

target cost, costs, poultry organizations, cost of production, cluster analysis, types of products, target rate of return, target price, cost management, pricing, price, Cluster analysis

Abstract

Under the current conditions of a competitive market environment for poultry organizations, it is necessary to focus on market prices, establish a target price on their basis and, accordingly, determine the target cost in order to exercise strategic management of the organization. In this study, it is proposed to use the concept of Target Costing - target cost planning in poultry farms. The basis of the concept of this system is a change of view on the relationship between price, profit and cost. The concept of target cost in relation to poultry organizations. The main condition for the calculations is the price at which sales can be made in the planned volumes, and profit, a decrease in the amount of which deprives the sense of working on this product. The result of the calculations is the cost, which must fit into the design, manufacture and promotion of the product. The calculation of the target cost based on data on the costs of the poultry organization by product. The cluster cost analysis was carried out on the basis of target, minimum possible, maximum allowable and actual costs in the poultry farming organization, which makes it possible to control the values ​​of the target cost and its deviation from the actual cost. Having carried out cluster analysis in the poultry-farming organization, conclusions were drawn on the correspondence of the target cost price to the actual, so in some cases the target cost price is overestimated, and the actual cost price is close to the minimum possible. This suggests that the organization receives a target profit, and there are opportunities for its increase.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - A.V. Rasputina
AU  - O.Yu. Ziboreva
PY  - 2019/05
DA  - 2019/05
TI  - Cluster analysis as a tool for managing and forecasting target cost in poultry organizations
BT  - Proceedings of the 1st International Scientific Conference "Modern Management Trends and the Digital Economy: from Regional Development to Global Economic Growth" (MTDE 2019)
PB  - Atlantis Press
SP  - 331
EP  - 335
SN  - 2352-5428
UR  - https://doi.org/10.2991/mtde-19.2019.63
DO  - 10.2991/mtde-19.2019.63
ID  - Rasputina2019/05
ER  -