IJSRP, Volume 3, Issue 8, August 2013 Edition [ISSN 2250-3153]
Abobaker M Fatah, Rosliza Mat-Zin
This paper used qualitative approach to understand the practice of cost accounting systems in the Libyan agricultural firms. Unstructured interview was used to collect data from the interviewees to achieve the research objectives. The study interviewed six employees from different Libyan agricultural firms to understand the current practices of cost accounting systems. The findings indicated that traditional costing is widely used in the Libyan agricultural firms, whereby, full absorption costing is used to calculate the product costs, to allocate overhead costs Libyan agricultural firms rely on volume-based methods such as cultivated area to allocate the indirect costs to products from plantation department, the most used methods to evaluate the inventory in the agricultural firms in Libya is First-in-first out method, the depreciation calculated using Straight-line method. Cost information mainly used for pricing decisions in the Libyan agricultural firms.