COST OPTIMIZATION IN AGRIBUSINESS BASED ON LIFE CYCLE COSTING
DOI:
https://doi.org/10.5937/ekoPolj1903823SKeywords:
cost optimization, life cycle costing, competitiveness, sustainable development, agribusinessAbstract
In efforts to achieve and sustain competitiveness and contribute to the goal of sustainable development of society, entity management requires information that will enable the adoption of adequate decisions. The changed business environment and the growing importance of the issues that emerge from the domain of traditional business, both spatial and temporal, have necessitated the monitoring of costs not only during the production phase, but throughout the entire grain cycle of the product. Since conventional cost accounting systems do not have the capacity to generate the above information, in theory and practice, a life cycle costing system (LCC) has been developed. The aim of the paper is to point out the specificity and importance of perceiving and capturing the impacts and consequential costs that arise during the life cycle of the product, with particular reference to agribusiness, precisely because of the complexity of optimizing costs in that sector.
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23. Song, Q., Wang, Z., & Li, J. (2013). Envrionmental performance of municipal solid waste strategies on LCA method: a case study of Macau, Journal of Cleaner Production, 57, 92-100.
24. Tamburini, E., Pedrini, P., Marchetti, M.G., Fano, Е.A., & Castaldelli, G. (2015). Life Cycle Based Evaluation of Environmental and Economic Impacts of Agriculture Productions in the Mediterranean Area, Sustainability, 7, 2915-2935.
25. United Nations Environment Programme, Guidelines for Social Life Cycle Assessment of Products, 2009, Retrieved from http://www.unep.fr/shared/publications/pdf/dtix1164xpa-guidelines_slca.pdf (December 19, 2018).
26. Vlachy, J. (2014). Using Life Cycle Costing for Product Management, Management, Faculty of organizational sciencies, Belgrade, 19, 205-218.
27. Vladisavljević, V., & Vukasović, B. (2017). Contemporary costing systems, Oditor - časopis za menadžment, finansije i pravo, Centar za ekonomska i finansijska istraživanja, Beograd, 3(3), 133-151. [In Serbian: Владисављевић, В., & Вукасовић, Б. (2017). Савремени системи обрачуна тропкова].
2. Bjorn A., Owsianiak M., Molin C., & Laurent A. (2018). Main Characteristics of LCA, in: Life Cycle Assessment - Theory and Practice, eds. Hauschild M., Rosenbaum R., Olsen S., Springer International Publishing.
3. Boussabaine H., & Kirkham R. (2004). Whole Life-Cycle Costing, Risk and Risk Responses, Blackwell Publishing Ltd.
4. Cerutti, A.K., Beccaro, G.L., Bruun, S., Bosco, S., Donno, D., Notarnicola, B., & Bounous, G. (2014). Life cycle assessment application in the fruit sector: State of the art and recommendations for environmetal declarations of fruit products, Journal of Cleaner Production, 73, 125-135.
5. Davis Langdon Management Consulting, (2006). Literature revies of life cycle costing (LCC) and life cycle assessment (LCA), Draft review, Retrieved from https://www.tmb.org.tr/arastirma_yayinlar/LCC_Literature_Review_Report.pdf (October 12, 2018).
6. De Marco, I., Riemma, S., & Iannone, R. (2018). Uncertainity of input parameters and sensitivity analysis in life cycle assessment: An Intalian processed tomato product, Journal of Cleaner Production, 177, 315-325.
7. Dijkman T., Basset-Mens C., Anton A., & Nunez M. (2018). LCA of Food and Agribulture, in: Life Cycle Assessment - Theory and Practice, eds. Hauschild M., Rosenbaum R., Olsen S., Springer International Publishing.
8. Dhillon B. (1989). Life Cycle Costing, Gordon and Breach Science Publishers.
9. European Food SCP Round Table, (2013). Envifood Protocol Environmental Assessment of Food and Drink Protocol, Retrieved from http://www.food-scp.eu/files/ENVIFOOD_Protocol_Vers_1.0.pdf (October 19, 2018).
10. Finnveden, G., Hauschild, M.Z., Ekvall, T., Guinee, J., Heijungs, R., Hellweg, S., Koehler, A., Pennington, D., & Suh, S. (2009). Recent developments in Life Cycle Assessment, Journal of Environmental Management, 91, 1-21.
11. Gluch, P., & Baumann, H. (2004). The Life Cycle Costing Approach: A Conceptual discussion of the usefulness for environmental decision-making, Building and the Environment, 39(5), 571-580.
12. Gunady, M.G.A., Biswas, W., Solah, V.A., & James, A.P. (2012). Evaluating the global warming potential of the fresh produce supply chain for strawberries, romaine/cos lettuces (Lactuca sativa), and button mushrooms (Agaricus bisporus) in Western Australia using life cycle assessment (LCA), Journal of Cleaner Production, 26, 81-87.
13. Iannone, R., Miranda, S., Riemma, S., & De Mаrco, I. (2016). Improving environmental performance in wine production by a life cycle assessment analysis, Journal of Cleaner Production, 111, 172-180.
14. Lichtenvort K., Rebitzer G., Huppes G., Ciroth A., Seuring S., Schmidt W., Ganther E., Hoppe H., Swarr T., & Hunkeler D. (2008). Histrory of Life Cycle Costing, its Categorization, and its Basic Framework, in: Environmental Life Cycle Costing, eds. Hunkeler D., Lichtenvort K., Rebitzer G., SETAC Press.
15. Notarnicola, B., Tassielli, & Renzulli, P. (2012). Modeling the Agri-food Industry with Life Cycle Assessment, in: Life cycle assessment handbook: A gudie for environmentally sustainable product, ed. Curran, M., A., John Wiley & Sins, Inc., New Jersey.
16. Notarnicola, B., Sala, S., Anton, A., McLaren, S., Saouter, E., & Sonesson, L. (2017). The role of life cycle assessment in supporting sustaibable agri-food systems: A review of the challenges, Journal of Cleaner Production, 140, 399-409.
17. Prasara, J., & Gheewala, S. (2018). Applying Social Life Cycle in the Thain Sugar Industry: Challenges from the field, Journal of Cleaner Production, 172, 335-346.
18. Praća, N., Paspalj, M., & Paspalj, D. (2017). Impact of modern agriculture to sustainable development of guidelines, Oditor- časopis za menadžment, finansije i pravo, Centar za ekonomska i finansijska istraživanja, Beograd, 3(1), 37-51. [In Serbian: Праћа, Н., Паспаљ, М., & Паспаљ, Д. (2017). Економска анализа утицаја савремене пољопривреде на одрживи развој].
19. Reddy, R., Kurian, M., & Ardakanian, R. (2015). Life-cycle Cost Approach for Management of Environmental Resources, Springer.
20. Rodger, J-M., Kjaer, L., & Pagoropoulos A. (2018). Life Cycle Costing: An Introduction, in: Life Cycle Assessment - Theory and Practice, eds. Hauschild M., Rosenbaum R., Olsen S., Springer International Publishing.
21. SIGMA, Life Cycle Costing, (2016). Retrieved from http://www.sigmaweb.org/publications/Public-Procurement-Policy-Brief-34-200117.pdf (November 10, 2018).
22. Saarikoski, H., Mustajoki, J., Barton, D., Geneletti, D., Langemeyer, J., Gomez-Baggethun, E., Marttunen, M., Antunes, P., Keune, H., & Santos, R. (2016). Multi-Criteria Analysis and Cost-Benefit Analysis: Comparing alternative framework for integrated valuation of ecosystem services, Ecosystem Services, 22, 238-249.
23. Song, Q., Wang, Z., & Li, J. (2013). Envrionmental performance of municipal solid waste strategies on LCA method: a case study of Macau, Journal of Cleaner Production, 57, 92-100.
24. Tamburini, E., Pedrini, P., Marchetti, M.G., Fano, Е.A., & Castaldelli, G. (2015). Life Cycle Based Evaluation of Environmental and Economic Impacts of Agriculture Productions in the Mediterranean Area, Sustainability, 7, 2915-2935.
25. United Nations Environment Programme, Guidelines for Social Life Cycle Assessment of Products, 2009, Retrieved from http://www.unep.fr/shared/publications/pdf/dtix1164xpa-guidelines_slca.pdf (December 19, 2018).
26. Vlachy, J. (2014). Using Life Cycle Costing for Product Management, Management, Faculty of organizational sciencies, Belgrade, 19, 205-218.
27. Vladisavljević, V., & Vukasović, B. (2017). Contemporary costing systems, Oditor - časopis za menadžment, finansije i pravo, Centar za ekonomska i finansijska istraživanja, Beograd, 3(3), 133-151. [In Serbian: Владисављевић, В., & Вукасовић, Б. (2017). Савремени системи обрачуна тропкова].
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Published
2019-09-30
How to Cite
Savić, B., Milojević, I., & Petrovic, V. (2019). COST OPTIMIZATION IN AGRIBUSINESS BASED ON LIFE CYCLE COSTING. Ekonomika Poljoprivrede, 66(3), 823–834. https://doi.org/10.5937/ekoPolj1903823S
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Review articles
