| Abstract: | After a brief discussion of production functions as models for input/output relations in forest work operations, studies of the cost of machine use are reviewed. It is suggested that the fuel consumption of a forest machine can be used as a parameter for assessing the true, total cost of using a machine, exclusively the wage of the operator. Fuel then is not only an input but also represents all other cost items such as capital (depreciation, interest), repairs and maintenance. This has the advantage that all machines in a system can be aggregated and their costs assessed by an easily quantified parameter. Capital (in the form of machines) in production functions, through which the optimum mix of labour and machines for minimizing the cost per unit of production is determined, can be substituted by fuel. It is also suggested that fuel consumption can be used in management as an aggregate indicator in planning, control, remuneration of work and forecasting. |
