Effectiveness of MFCA as a tool to improving sucrose quality in sugarcane production
Sugarcane production in South Africa is one of the major foreign exchange earnings, and constitute an important contributor to GDP growth of South Africa. It is argued that sucrose content, one of the significant components of sugarcane has been at the declining trend in the recent years. This study...
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doaj-74445a6429f348cfb69cbcfb7e4647412020-11-25T02:11:40ZengLLC "CPC "Business Perspectives"Environmental Economics1998-60411998-605X2017-10-018310211010.21511/ee.08(3-1).2017.029232Effectiveness of MFCA as a tool to improving sucrose quality in sugarcane productionMishelle Doorasamy0Bruce Rhodes1Lecturer, Department of Accounting, School of Accounting, Economics and Finance, University of Kwa-Zulu Natal, Westville campusPh.D., Department of Economics, School of Accounting, Economic and Finance, University of KwaZulu-Natal, Westville Campus, DurbanSugarcane production in South Africa is one of the major foreign exchange earnings, and constitute an important contributor to GDP growth of South Africa. It is argued that sucrose content, one of the significant components of sugarcane has been at the declining trend in the recent years. This study offers Material Flow Cost Accounting (MFCA) as an important tool, since it supports managerial decision making process by making it possible to visualize and quantify material losses. The study hypothesis is that can MFCA as tool increase organizational profitability. The study adopts models from literature to access the efficiency of MFCA as an important alternatives to the conventional accounting process. In this study, production cost has been classified into four categories, namely: system cost, energy cost, material flow cost and residual cost. Accessing the efficiency of this accounting skill, data from South African Sugarcane Milling industry has been adopted to establish our claim in the study and finally, this study has been able to implement the process involved in the use of MFCA. We, therefore, recommend the proficient use of MFCA in organizations among the South African industries as it possess the quality of classifying product cost from waste cost and hence improving profitability and organizational efficiency.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9232/EE_2017_03cont._Doorasamy.pdfdecision makingefficiencyorganizational profitability and material lossesproduction cost |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Mishelle Doorasamy Bruce Rhodes |
spellingShingle |
Mishelle Doorasamy Bruce Rhodes Effectiveness of MFCA as a tool to improving sucrose quality in sugarcane production Environmental Economics decision making efficiency organizational profitability and material losses production cost |
author_facet |
Mishelle Doorasamy Bruce Rhodes |
author_sort |
Mishelle Doorasamy |
title |
Effectiveness of MFCA as a tool to improving sucrose quality in sugarcane production |
title_short |
Effectiveness of MFCA as a tool to improving sucrose quality in sugarcane production |
title_full |
Effectiveness of MFCA as a tool to improving sucrose quality in sugarcane production |
title_fullStr |
Effectiveness of MFCA as a tool to improving sucrose quality in sugarcane production |
title_full_unstemmed |
Effectiveness of MFCA as a tool to improving sucrose quality in sugarcane production |
title_sort |
effectiveness of mfca as a tool to improving sucrose quality in sugarcane production |
publisher |
LLC "CPC "Business Perspectives" |
series |
Environmental Economics |
issn |
1998-6041 1998-605X |
publishDate |
2017-10-01 |
description |
Sugarcane production in South Africa is one of the major foreign exchange earnings, and constitute an important contributor to GDP growth of South Africa. It is argued that sucrose content, one of the significant components of sugarcane has been at the declining trend in the recent years. This study offers Material Flow Cost Accounting (MFCA) as an important tool, since it supports managerial decision making process by making it possible to visualize and quantify material losses. The study hypothesis is that can MFCA as tool increase organizational profitability. The study adopts models from literature to access the efficiency of MFCA as an important alternatives to the conventional accounting process. In this study, production cost has been classified into four categories, namely: system cost, energy cost, material flow cost and residual cost. Accessing the efficiency of this accounting skill, data from South African Sugarcane Milling industry has been adopted to establish our claim in the study and finally, this study has been able to implement the process involved in the use of MFCA. We, therefore, recommend the proficient use of MFCA in organizations among the South African industries as it possess the quality of classifying product cost from waste cost and hence improving profitability and organizational efficiency. |
topic |
decision making efficiency organizational profitability and material losses production cost |
url |
https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9232/EE_2017_03cont._Doorasamy.pdf |
work_keys_str_mv |
AT mishelledoorasamy effectivenessofmfcaasatooltoimprovingsucrosequalityinsugarcaneproduction AT brucerhodes effectivenessofmfcaasatooltoimprovingsucrosequalityinsugarcaneproduction |
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