1. Determine the cost of separate items for the whole farm.
2. Identify the enterprises on the farm.
3. Classify the costs as direct or indirect.
4. Allocate the direct costs and returns.
5. Determine the best way to allocate indirect costs.
6. Calculate the percentage of total use, gross income, and variable costs for each enterprise.
7. Allocate the indirect.
8. Calculate the costs per unit.