Farm and Ranch Management Exam 3
questions n answers
For a given total cost, the higher the yield, the lower the break-even price - correct answer
✔✔True
Which of the following would be a fixed cost on a typical crop enterprise budget? - correct
answer ✔✔Owned land charge
Some enterprises may have more than one source of revenue - correct answer ✔✔True
Some enterprise budget lists all the returns and costs associated with producing a unit of a
given enterprise - correct answer ✔✔True
In an enterprise budget, if there is only one source of revenue, the total cost per bushel or per
pound will be _____ the break-even selling price - correct answer ✔✔Just equal to
On an enterprise budget, fixed costs are also called - correct answer ✔✔Ownership costs
Of output increases with no change in total cost, breakeven selling price will - correct answer
✔✔Decrease
The cost of production is the same as average total cost - correct answer ✔✔True
Cost of production will be the same value as - correct answer ✔✔Average total cost
, Enterprise budgets are useful when selecting enterprises to include a whole new farm plan -
correct answer ✔✔True
It is safe to assume that the input levels shown on published enterprise budgets are the profit-
maximizing amounts - correct answer ✔✔False
Sources of revenue for a crop enterprise could include any of the following except - correct
answer ✔✔???
Changing the value of one or more variables in a budget to test the effect on profit is - correct
answer ✔✔Sensitivity analysis
There is only one possible enterprise budget for each species of livestock - correct answer
✔✔False
If fixed costs on an enterprise budget were to increase, the market price needed to break even
would increase - correct answer ✔✔True
The lower the expected yield of an enterprise, all other things being equal, the lower the break
even price - correct answer ✔✔False
On a breeding livestock enterprise budget, if replacement females are assumed to be raised on
a farm or ranch, - correct answer ✔✔The number of young females sold should be reduced
The unit for a crop enterprise budget us usually - correct answer ✔✔One acre or hectare
Cost of production per unit is computed from the equation - correct answer ✔✔total cost
divided by quantity of output produced
questions n answers
For a given total cost, the higher the yield, the lower the break-even price - correct answer
✔✔True
Which of the following would be a fixed cost on a typical crop enterprise budget? - correct
answer ✔✔Owned land charge
Some enterprises may have more than one source of revenue - correct answer ✔✔True
Some enterprise budget lists all the returns and costs associated with producing a unit of a
given enterprise - correct answer ✔✔True
In an enterprise budget, if there is only one source of revenue, the total cost per bushel or per
pound will be _____ the break-even selling price - correct answer ✔✔Just equal to
On an enterprise budget, fixed costs are also called - correct answer ✔✔Ownership costs
Of output increases with no change in total cost, breakeven selling price will - correct answer
✔✔Decrease
The cost of production is the same as average total cost - correct answer ✔✔True
Cost of production will be the same value as - correct answer ✔✔Average total cost
, Enterprise budgets are useful when selecting enterprises to include a whole new farm plan -
correct answer ✔✔True
It is safe to assume that the input levels shown on published enterprise budgets are the profit-
maximizing amounts - correct answer ✔✔False
Sources of revenue for a crop enterprise could include any of the following except - correct
answer ✔✔???
Changing the value of one or more variables in a budget to test the effect on profit is - correct
answer ✔✔Sensitivity analysis
There is only one possible enterprise budget for each species of livestock - correct answer
✔✔False
If fixed costs on an enterprise budget were to increase, the market price needed to break even
would increase - correct answer ✔✔True
The lower the expected yield of an enterprise, all other things being equal, the lower the break
even price - correct answer ✔✔False
On a breeding livestock enterprise budget, if replacement females are assumed to be raised on
a farm or ranch, - correct answer ✔✔The number of young females sold should be reduced
The unit for a crop enterprise budget us usually - correct answer ✔✔One acre or hectare
Cost of production per unit is computed from the equation - correct answer ✔✔total cost
divided by quantity of output produced
