AGBU 2389 ADVANCED COURSE
EVALUATION 2026 ACCURATE ANSWERS
PERFECT SCORE
⩥ what does partial budgeting do to existing farm plans? Answer: fine
tunes them
⩥ where do you get information for your partial budgets? Answer: from
the enterprise budgets
⩥ use of a partial budget (examples) Answer: - increase the size of a
small beef herd or eliminate it
- own custom harvesting equipment or custom hire harvesting
- plant more barley and less wheat
⩥ use of a partial budget Answer: use partial budgeting to evaluate a
production change to see its financial effect on the overall farm business
⩥ what does a partial budget measure? Answer: small changes to your
operation
⩥ what can you calculate with a partial budget? Answer: the expected
change in profit from a proposed change in the farm business
, ⩥ true or false: a partial budget is a form of marginal analysis Answer:
true
⩥ steps of the partial budgeting procedure Answer: 1. identify and define
the problem
2. identify alternatives
3. collect data and information
4. analyze alternatives
⩥ what questions should you ask yourself when proposing an alternative
and it is implemented? Answer: - what new or additional costs will be
incurred?
- what current costs will be reduced or eliminated?
- what new or additional revenue will be received?
- what current revenue will be lost or reduced?
⩥ additional costs Answer: costs that don't exist at the current time with
the current plan
⩥ why are additional costs incurred? Answer: - a new or expanded
enterprise requires additional inputs
- your increasing your current level of input use
- your substituting more of one input for another
EVALUATION 2026 ACCURATE ANSWERS
PERFECT SCORE
⩥ what does partial budgeting do to existing farm plans? Answer: fine
tunes them
⩥ where do you get information for your partial budgets? Answer: from
the enterprise budgets
⩥ use of a partial budget (examples) Answer: - increase the size of a
small beef herd or eliminate it
- own custom harvesting equipment or custom hire harvesting
- plant more barley and less wheat
⩥ use of a partial budget Answer: use partial budgeting to evaluate a
production change to see its financial effect on the overall farm business
⩥ what does a partial budget measure? Answer: small changes to your
operation
⩥ what can you calculate with a partial budget? Answer: the expected
change in profit from a proposed change in the farm business
, ⩥ true or false: a partial budget is a form of marginal analysis Answer:
true
⩥ steps of the partial budgeting procedure Answer: 1. identify and define
the problem
2. identify alternatives
3. collect data and information
4. analyze alternatives
⩥ what questions should you ask yourself when proposing an alternative
and it is implemented? Answer: - what new or additional costs will be
incurred?
- what current costs will be reduced or eliminated?
- what new or additional revenue will be received?
- what current revenue will be lost or reduced?
⩥ additional costs Answer: costs that don't exist at the current time with
the current plan
⩥ why are additional costs incurred? Answer: - a new or expanded
enterprise requires additional inputs
- your increasing your current level of input use
- your substituting more of one input for another
