Production cost calculations as the basis for pricing decisions [in Finland]
1991
Hokkanen, M. (Agricultural Economics Research Institute, Helsinki (Finland))
In Finland target prices have been set for the most important agricultural products. Target prices are agreed on in the farm income negotiations between the state and the representatives of agricultural producers. According to the farm income act, the market situation of different products and the development of the production costs of individual products must be taken into account in the distribution. At the agricultural economics research institute, production cost calculations based on farm models are prepared. This report focuses on the creation of the farm models and the accounting procedures for production costs which underlie production cost calculations. In addition, production cost percentages by production sector calculated on the basis of the bookkeeping data are presented.
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