Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania

Godfrey Molela; Mohamed Baraza; Lukelo Msese; Mohamed Kaluse; Felix Mlay

doi:doi:10.11648/j.jfa.20210904.11

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Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania

Godfrey Molela, Mohamed Baraza, Lukelo Msese, Mohamed Kaluse, Felix Mlay

Published in Journal of Finance and Accounting (Volume 9, Issue 4)

Received: 11 January 2021 Accepted: 18 January 2021 Published: 6 July 2021

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Abstract

Sunflower is among the key cash crops in Tanzania, which contribute significantly to the country’s economy. As it is the case for other crop subsectors, sunflower is also grown in abundance by smallholder farmers. Nevertheless, they had been living in poverty throughout their careers in agriculture which on the other hand benefited the counterparties in the trading deals. The unfair price offered to sunflower farmers was discovered in this study to be a misfortune in their investments. The conventional average farm-gate price of TZS. 622.449/Kg was found to be out of the price ranges that were backed by traditional cost accounting system, leaving farmers making losses of minimum TZS. 99.889/Kg. This study was conducted in Singida Region, Tanzania where a sample of 206 household farmers was used to obtain primary data on activity costs while the secondary data concerning the conventional price were obtained from the Districts’ sales reports and farmers’ records. Inferential statistics with one-sample test model was used alongside the IBM SPSS 26.0 statistical package in the quantitative data analysis. It was recommended, further studies to be conducted to explore more about the production cost that is backed by the activity-based costing (ABC) system, as it is more effective in assigning overheads to cost object than the traditional costing.

Published in	Journal of Finance and Accounting (Volume 9, Issue 4)
DOI	10.11648/j.jfa.20210904.11
Page(s)	111-116
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Smallholder Farmers, Sunflower, Farm-Gate Price Range, Conventional Price, Traditional Cost Accounting, Activity-Based Costing (ABC)

References

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APA Style

Godfrey Molela, Mohamed Baraza, Lukelo Msese, Mohamed Kaluse, Felix Mlay. (2021). Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania. Journal of Finance and Accounting, 9(4), 111-116. https://doi.org/10.11648/j.jfa.20210904.11

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ACS Style

Godfrey Molela; Mohamed Baraza; Lukelo Msese; Mohamed Kaluse; Felix Mlay. Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania. J. Finance Account. 2021, 9(4), 111-116. doi: 10.11648/j.jfa.20210904.11

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AMA Style

Godfrey Molela, Mohamed Baraza, Lukelo Msese, Mohamed Kaluse, Felix Mlay. Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania. J Finance Account. 2021;9(4):111-116. doi: 10.11648/j.jfa.20210904.11

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@article{10.11648/j.jfa.20210904.11,
  author = {Godfrey Molela and Mohamed Baraza and Lukelo Msese and Mohamed Kaluse and Felix Mlay},
  title = {Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania},
  journal = {Journal of Finance and Accounting},
  volume = {9},
  number = {4},
  pages = {111-116},
  doi = {10.11648/j.jfa.20210904.11},
  url = {https://doi.org/10.11648/j.jfa.20210904.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20210904.11},
  abstract = {Sunflower is among the key cash crops in Tanzania, which contribute significantly to the country’s economy. As it is the case for other crop subsectors, sunflower is also grown in abundance by smallholder farmers. Nevertheless, they had been living in poverty throughout their careers in agriculture which on the other hand benefited the counterparties in the trading deals. The unfair price offered to sunflower farmers was discovered in this study to be a misfortune in their investments. The conventional average farm-gate price of TZS. 622.449/Kg was found to be out of the price ranges that were backed by traditional cost accounting system, leaving farmers making losses of minimum TZS. 99.889/Kg. This study was conducted in Singida Region, Tanzania where a sample of 206 household farmers was used to obtain primary data on activity costs while the secondary data concerning the conventional price were obtained from the Districts’ sales reports and farmers’ records. Inferential statistics with one-sample test model was used alongside the IBM SPSS 26.0 statistical package in the quantitative data analysis. It was recommended, further studies to be conducted to explore more about the production cost that is backed by the activity-based costing (ABC) system, as it is more effective in assigning overheads to cost object than the traditional costing.},
 year = {2021}
}

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TY - JOUR
T1 - Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania
AU - Godfrey Molela
AU - Mohamed Baraza
AU - Lukelo Msese
AU - Mohamed Kaluse
AU - Felix Mlay
Y1 - 2021/07/06
PY - 2021
N1 - https://doi.org/10.11648/j.jfa.20210904.11
DO - 10.11648/j.jfa.20210904.11
T2 - Journal of Finance and Accounting
JF - Journal of Finance and Accounting
JO - Journal of Finance and Accounting
SP - 111
EP - 116
PB - Science Publishing Group
SN - 2330-7323
UR - https://doi.org/10.11648/j.jfa.20210904.11
AB - Sunflower is among the key cash crops in Tanzania, which contribute significantly to the country’s economy. As it is the case for other crop subsectors, sunflower is also grown in abundance by smallholder farmers. Nevertheless, they had been living in poverty throughout their careers in agriculture which on the other hand benefited the counterparties in the trading deals. The unfair price offered to sunflower farmers was discovered in this study to be a misfortune in their investments. The conventional average farm-gate price of TZS. 622.449/Kg was found to be out of the price ranges that were backed by traditional cost accounting system, leaving farmers making losses of minimum TZS. 99.889/Kg. This study was conducted in Singida Region, Tanzania where a sample of 206 household farmers was used to obtain primary data on activity costs while the secondary data concerning the conventional price were obtained from the Districts’ sales reports and farmers’ records. Inferential statistics with one-sample test model was used alongside the IBM SPSS 26.0 statistical package in the quantitative data analysis. It was recommended, further studies to be conducted to explore more about the production cost that is backed by the activity-based costing (ABC) system, as it is more effective in assigning overheads to cost object than the traditional costing.
VL - 9
IS - 4
ER -

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Author Information

Godfrey Molela

Department of Accounting and Finance, The University of Dodoma, Dodoma City, Tanzania
Mohamed Baraza

Department of Accounting and Finance, The University of Dodoma, Dodoma City, Tanzania
Lukelo Msese

Department of Economics, The University of Dodoma, Dodoma City, Tanzania
Mohamed Kaluse

Department of Accounting, Tanzania Institute of Accountancy, Singida Region, Tanzania
Felix Mlay

Department of Business Management, Institute of Accountancy Arusha, Arusha City, Tanzania

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Plain Text BibTeX RIS

APA Style

Godfrey Molela, Mohamed Baraza, Lukelo Msese, Mohamed Kaluse, Felix Mlay. (2021). Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania. Journal of Finance and Accounting, 9(4), 111-116. https://doi.org/10.11648/j.jfa.20210904.11

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ACS Style

Godfrey Molela; Mohamed Baraza; Lukelo Msese; Mohamed Kaluse; Felix Mlay. Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania. J. Finance Account. 2021, 9(4), 111-116. doi: 10.11648/j.jfa.20210904.11

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AMA Style

Godfrey Molela, Mohamed Baraza, Lukelo Msese, Mohamed Kaluse, Felix Mlay. Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania. J Finance Account. 2021;9(4):111-116. doi: 10.11648/j.jfa.20210904.11

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@article{10.11648/j.jfa.20210904.11,
  author = {Godfrey Molela and Mohamed Baraza and Lukelo Msese and Mohamed Kaluse and Felix Mlay},
  title = {Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania},
  journal = {Journal of Finance and Accounting},
  volume = {9},
  number = {4},
  pages = {111-116},
  doi = {10.11648/j.jfa.20210904.11},
  url = {https://doi.org/10.11648/j.jfa.20210904.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20210904.11},
  abstract = {Sunflower is among the key cash crops in Tanzania, which contribute significantly to the country’s economy. As it is the case for other crop subsectors, sunflower is also grown in abundance by smallholder farmers. Nevertheless, they had been living in poverty throughout their careers in agriculture which on the other hand benefited the counterparties in the trading deals. The unfair price offered to sunflower farmers was discovered in this study to be a misfortune in their investments. The conventional average farm-gate price of TZS. 622.449/Kg was found to be out of the price ranges that were backed by traditional cost accounting system, leaving farmers making losses of minimum TZS. 99.889/Kg. This study was conducted in Singida Region, Tanzania where a sample of 206 household farmers was used to obtain primary data on activity costs while the secondary data concerning the conventional price were obtained from the Districts’ sales reports and farmers’ records. Inferential statistics with one-sample test model was used alongside the IBM SPSS 26.0 statistical package in the quantitative data analysis. It was recommended, further studies to be conducted to explore more about the production cost that is backed by the activity-based costing (ABC) system, as it is more effective in assigning overheads to cost object than the traditional costing.},
 year = {2021}
}

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