AGBU 2389, AGBU Bullion Exam 2,
AGBU Exam 3 Question and answers
already passed
Management functions - correct answer ✔(PIC): plan, implement, control.
Partial Budgeting - correct answer ✔-Method for analyzing the profit potential
of small changes in the overall farm plan.
-"Fine-tuning" an existing farm plan
-Use information from enterprise budgets
Assets (be able to explain) - correct answer ✔Has value for one or both of 2
reasons:
-Can be sold or generate cash
-Used to produce other goods that in turn can be sold for cash in the future.
(calf, bull, cow)
Steps in the decision making process - correct answer ✔1. Identify and
define the problem or opportunity.
2. Identify alternative solutions.
3. Collect data and information.
4. Analyze the alternatives and make a decision.
5. Implement the decision.
6. Monitor and evaluate the results.
7. Accept responsibility.
,Current assets - correct answer ✔Assets that can be used up, sold, or
converted to cash in the next year as a normal part of business activities.
(short term)
Uses of a Partial Budget - Examples - correct answer ✔-Increase the size of
a small beef herd or eliminate it
-Own custom harvesting equipment or custom hire our harvesting
-Plant more barley and less wheat
Management Capacity - correct answer ✔the ability to make and improve
decisions over time both efficiently and rapidly
Non-current assets - correct answer ✔Any asset that is not classified as a
current asset. (long term)
Uses of a Partial Budget - correct answer ✔-Basically, we use partial
budgeting to evaluate a production change to see its financial effect on the
overall farm business
-Calculate the expected change in profit from a proposed change in the farm
business.
-Compares the profitability of the current situation with a proposed change or
new alternative.
-A form of marginal analysis
-Measures "small changes"
Characteristics of a decision - correct answer ✔1. Importance
2. Frequency
3. Imminence
4. Revocability
, 5. Number of alternatives
Liabilities (be able to explain) - correct answer ✔-An obligation or debt owed
to someone else
-or it represents an obligation claim against one or more of the business
assets.
Partial Budgeting Procedure Steps - correct answer ✔Identify and define the
problem.
Identify alternatives.
Collect data and information.
Analyze alternatives.
Current Liabilities: - correct answer ✔Are financial obligations that will
become due and payable within one year from the date of the balance sheet
(short term)
Non current Liabilities: - correct answer ✔All obligations that do not have to
be paid in full within the next year. (long term)
Long term Liabilities: - correct answer ✔Greater than 10 years (mortgages
certain purchase agreements)
Intermediate Liabilities: - correct answer ✔Typically debt that is due in 1 to
10 years (Ex. vehicle, loans)
What will happen if the proposed alternative is implemented? 4 questions: -
correct answer ✔What new or additional costs will be incurred?
What current costs will be reduced or eliminated?
AGBU Exam 3 Question and answers
already passed
Management functions - correct answer ✔(PIC): plan, implement, control.
Partial Budgeting - correct answer ✔-Method for analyzing the profit potential
of small changes in the overall farm plan.
-"Fine-tuning" an existing farm plan
-Use information from enterprise budgets
Assets (be able to explain) - correct answer ✔Has value for one or both of 2
reasons:
-Can be sold or generate cash
-Used to produce other goods that in turn can be sold for cash in the future.
(calf, bull, cow)
Steps in the decision making process - correct answer ✔1. Identify and
define the problem or opportunity.
2. Identify alternative solutions.
3. Collect data and information.
4. Analyze the alternatives and make a decision.
5. Implement the decision.
6. Monitor and evaluate the results.
7. Accept responsibility.
,Current assets - correct answer ✔Assets that can be used up, sold, or
converted to cash in the next year as a normal part of business activities.
(short term)
Uses of a Partial Budget - Examples - correct answer ✔-Increase the size of
a small beef herd or eliminate it
-Own custom harvesting equipment or custom hire our harvesting
-Plant more barley and less wheat
Management Capacity - correct answer ✔the ability to make and improve
decisions over time both efficiently and rapidly
Non-current assets - correct answer ✔Any asset that is not classified as a
current asset. (long term)
Uses of a Partial Budget - correct answer ✔-Basically, we use partial
budgeting to evaluate a production change to see its financial effect on the
overall farm business
-Calculate the expected change in profit from a proposed change in the farm
business.
-Compares the profitability of the current situation with a proposed change or
new alternative.
-A form of marginal analysis
-Measures "small changes"
Characteristics of a decision - correct answer ✔1. Importance
2. Frequency
3. Imminence
4. Revocability
, 5. Number of alternatives
Liabilities (be able to explain) - correct answer ✔-An obligation or debt owed
to someone else
-or it represents an obligation claim against one or more of the business
assets.
Partial Budgeting Procedure Steps - correct answer ✔Identify and define the
problem.
Identify alternatives.
Collect data and information.
Analyze alternatives.
Current Liabilities: - correct answer ✔Are financial obligations that will
become due and payable within one year from the date of the balance sheet
(short term)
Non current Liabilities: - correct answer ✔All obligations that do not have to
be paid in full within the next year. (long term)
Long term Liabilities: - correct answer ✔Greater than 10 years (mortgages
certain purchase agreements)
Intermediate Liabilities: - correct answer ✔Typically debt that is due in 1 to
10 years (Ex. vehicle, loans)
What will happen if the proposed alternative is implemented? 4 questions: -
correct answer ✔What new or additional costs will be incurred?
What current costs will be reduced or eliminated?
