An analysis of joint costs in a managed forest ecosystem (Q1068703)

This paper analyzes the tenability of line item budgeting and independently determined output costs for a managed forest ecosystem. The general problem of cost allocation in a joint production system is discussed as one of choosing paths of integration. A production structure is hypothesized for describing a managed forest ecosystem and its characteristics of ''jointness'' are discussed. Finally, an empirical case example is presented which indicates that cost estimates and associated means of production which result from single output costing procedures and from joint costing procedures may be significantly different in a managed forest ecosystem.