Management accounting of organic production and methods for assessing the level of efficiency of its development

Abstract

For Ukraine, organic production is one of the most important areas of further business development in agriculture, the processing industry of agricultural products, and the consumption of high-quality food products by the population, which ensures care for the environment and soil fertility, human health, social responsibility, resource-saving technologies, animal and plant health and well-being. Over the 30 years of independence, Ukraine has undergone three phases of organic production development: organizational, legislative, and strategic. Assessing the effectiveness of organic production depends on the specifics of its implementation by business entities. Organic production can be carried out by all structural units (organic enterprise), separate responsibility centers and objects of activity regarding crops and animals, and types of food products combined with transitional and conventional production. Management accounting should be essential in preventing economic risks in organic production. The objects of management accounting for the needs of organic production are organic production units, which are defined as assets comprising primary production facilities, land plots, pastures, open-air areas, premises for farm animals or parts thereof, beehives, fishponds, closed systems and facilities for algae or aquaculture animals, as well as storage facilities for crops, plant products, algae products, livestock products, raw materials and any other relevant. The main driving force for the development of organic production is its effectiveness in terms of economic effect in terms of profit and added value. In the context of making a profit from organic production, it is necessary to operate with absolute indicators of gross profit, created profit, and net profit and, accordingly, relative indicators of profitability of production costs (production cost) and operating costs (total cost), net income received and the coefficient of economic security (financial stability) of organic products and food. Keywords: organic production; management accounting; objects of accounting; added value; gross profit; effect of organic production.