This document classifies costs relating to agricultural farms into two categories: 1) On the basis of recognition with the final crop, which includes direct crop costs and common costs, and 2) On the basis of activities covered, which includes costs A-1 through C-2 depending on expenses included. Direct crop costs include items like seeds, fertilizers, pesticides, wages, and land rent. Common costs include maintenance of animals, machinery, farm buildings and structures, and interest. The basis of activities covered further breaks down costs based on cash/credit expenses, rental expenses, imputed interest, rental of owned land, and imputed family wages.

1. Sahana.L
1911B048
3rd B.Com ‘B’ Sec
Advanced Accounting
Topic: Classification of cost relating to Agricultural farms
submission date: 13/12/2021
Presenting date:14/12/21
To Asha Mam

2. WELCOME TO
ONE AND ALL

3. CLASSIFICATION OF COSTS
RELATING TO
AGRICULTURAL FARMS

4. 1. ON THE BASIS OF RECOGNITION
WITH THE FINAL CROP
A. Direct Crop Costs.
i. Seeds
ii. Fertilizers, manures etc.
iii. Pesticides and insecticides.
iv. Wages
v. Land rent
vi. Hire charges of powered machinery, implements and animals.
vii. Maintenance of own machinery.
viii. Implements, draught animals, if allocable etc.

5. B. Common cost
i. Maintenance costs of draught animals.
ii. Maintenance costs of own machinery, implements and
depreciation thereon.
iii. Maintenance costs of farm shed, buildings and structures
iv. Interest of fixed capital and working capital etc.

6. 2. ON THE BASIS OF ACTIVITIES
COVERED.
Category of Cost Includes
Cost A-1 Expenses incurred for production through Cash/Credit/Exchange Tr
Cost A-2 Cost A-1 + Rental Expense of Leased-in-Land
Cost B-1 Cost A-1 + Imputed Interest on Own Capital (excluding land)
Cost B-2 Cost B-1 + Imputed rental of owned land + rental expenses of leased-in-land
Cost C-1 Cost B-1 + Imputed wages of family workers.
Cost C-2 Cost B-1 + Imputed wages of family workers.

7. THANK YOU
ONE AND ALL