Acta Forestalia Fennica vol. 71 no. 4 | 1959
Category : Article
It is impossible to survey the results and profitability of forestry a hundred years hence of measures taken today. Financial reports in forestry should be kept as separate as possible from stocktaking. Under sustained forest management it is the task of silviculture to supervise the care of growing stock. As long a sufficient money is being used for forest improvement, the situation can be considered satisfactory. To ascertain just what is sufficient, in the analysis of the costs of forestry the investigators should concentrate on establishing which costs are fixed and which are direct (marginal).
Short-time changes of capital can also best be considered by means of a cost analysis of silvicultural measures and other operations. On the other hand, classification of the cost must be correct if the operational statistics are to be of any value. The calculations become much easier if fixed costs do not need to be distributed per production unit. Therefore, there may be good reason to try out marginal costing in forest enterprises. The fixed costs are increasing steadily.
This paper aims at giving ideas in determining the profitability of a forest enterprise. A marginal costing balance sheet mainly illustrates the structure of an enterprise, which gives a general picture of its profitability. If profitability is to be expressed by comparing yield with capital, yield can be treated as interest and capitalized. None the less, this is certain to result in different capital values depending on whether we take the yield to represent 3, 4, or 5% of the capital. A marginal balance is no substitute for the long-term planning which will be needed in a forest enterprise.
The PDF includes a summary in Swedish.
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Runeberg,
E-mail:
lr@mm.unknown
