Literature Review of the Practice of Cost Accounting System in the Agricultural Firms

This article aims to review the literature related to cost accounting in the agricultural firms to find out the reasons that made the accounting researchers pay less attention to study the cost accounting systems in the agricultural firms compared to manufacturing and servicing firms.The cost accounting literature indicated that there are several reasons that led to lack of literature in costing accounting systems in agricultural firms, for instance, the simplicity of production processes in the agricultural firms andthe delay of development in the agricultural activities for long time. However, the changes that occurred in the agricultural business environment such as increased level of competition, increased size of the agricultural firms and production of several products, encouraged decision makers to decrease the production cost to be able to survive. All these factors made the cost information very important for the agricultural firms. Therefore, this study suggested that accounting researchers should focus more on studying the practice of cost accounting systems in the agricultural firms.