Econometric methods in the analysis of duary total production costs

Main Article Content

Ferm?n Ra?l Cobo
Verena Torres
Yenia Machado
M. Fraga

Abstract

In order to apply the linear regression technique in the analysis of milk production costs and obtain their division in fixed and variable components, a database was prepared with information from the two milk production units of the Institute of Animal Science. Data were collected including the last five years. In order to estimate the total costs, the method of least squares was used permitting to obtain the estimated values of the fixed and variable costs. Models were revealed accounting for 88.9 % and 60.8 % of the performance of the total costs in both units. In the two models, there was statistically significant ratio (P < 0.01) for the 99 % confidence values, according to the tables of the regression analysis. The separation of the costs was attained according to their elements from the econometric techniques that facilitate the interpretation of the information. The need for particularizing and deepening into the forming elements of the total production cost was proved in a way that correct decision making could be guaranteed in a way that production costs can bve reduced or the volume of the income sources can be increased.
Key words: fixed costs, variable costs, linear regression.

Article Details

How to Cite
Cobo, F. R., Torres, V., Machado, Y., & Fraga, M. (2011). Econometric methods in the analysis of duary total production costs. Cuban Journal of Agricultural Science, 45(3). Retrieved from https://cjascience.com/index.php/CJAS/article/view/109
Section
Animal Science
Author Biographies

Ferm?n Ra?l Cobo

Instituto de Ciencia Animal, Apartado Postal 24, San Jos? de las Lajas, Mayabeque, Cuba

Verena Torres

Instituto de Ciencia Animal, Apartado Postal 24, San Jos? de las Lajas, Mayabeque, Cuba

Yenia Machado

Instituto de Ciencia Animal, Apartado Postal 24, San Jos? de las Lajas, Mayabeque, Cuba

M. Fraga

Universidad Agraria de La Habana, ?Fructuoso Rodr?guez P?rez?, Autopista Nacional, San Jos? de las Lajas, Mayabeque,

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