3.2 Costs

In order to implement the four steps of the transformation process, many services and inputs must be purchased on the market. Total costs are the sum of three cost types (Table 10):

• tables issued by competent institutions. The amounts are changed

Operative Machinery Costs Analysis within Forest Management Implementation Frame

• mixed approach, combining the two systems mentioned earlier; and

management;

Transaction costs. Source: Our elaboration.

DOI: http://dx.doi.org/10.5772/intechopen.87572

Figure 3.

3.2.2 Operative costs

87

• surveys on the dedicated market.

yards and to the forest workers

The LC costs are defined by market survey.

primary and secondary productive factors. Main primary factors are as follows:

• Capitals that include the following:

proportionally with the volume of timber felled or with the forest area under

The LCs' transaction costs are related to the obligations concerning the following:

• Healthy costs, capital investment to ensure high safety standard in the forestry

• Cost of refund deposit, caution money that forest owners can operate when LCs don't pay the stumpage price and for penalty that LCs incurred during the activities

All expenditures to implement technological cycle are defined as operative cost (Table 11). These costs are sustained to transform trees into marketable timber products, mainly by the LC and only a few for FL. They include expenditure to buy

• Land: capital permanently invested in the ground. While it is very relevant for FLOs, for LCs, it is limited to the structures for recovery and storage of

• Working capital such as machines (forwarder, harvester, chainsaw, etc.) and other tools (winch, etc.). Those have a multiple-year employment, so the use cost must be distributed through the years they will contribute to the activity

(amortization costs and annual interest). These costs are added to the

working capital, as machineries, machines, and other tools.

