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

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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Cite This Article
  • 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
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    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
  • Department of Accounting and Finance, The University of Dodoma, Dodoma City, Tanzania

  • Department of Accounting and Finance, The University of Dodoma, Dodoma City, Tanzania

  • Department of Economics, The University of Dodoma, Dodoma City, Tanzania

  • Department of Accounting, Tanzania Institute of Accountancy, Singida Region, Tanzania

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

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