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Procedures and practices for a container nursery record keeping system were developed. The goal of developing this system was to allow for cost allocation to a given group of plants for pricing and planning purposes. To accomplish this, the economic engineering method was employed to develop a model nursery firm where the best proven practices of plant production were utilized. Enterprise budgets were updated and modified to estimate cost of production for container sized #1 woody landscape plants by five plant species. Job-cost accounting procedures were used to allocate annual fixed costs and general overhead expenses. Results revealed that fixed cost per plant represented approximately one-third of total cost per plant for each species and production method. Determination of per-plant costs in trials was important in determining whether the production of a species was profitable. This also aided in establishing selling prices.

Estimating the Cost of Producing Container-Grown Landscape Plants with the Assistance of Computer Accounting Software