TEST BANK
FARM MANAGEMENT 10TH EDITION (MCGRAW
HILL, 2023) BY RONALD D. KAY, WILLIAM M.
EDWARDS AND PATRICIA A. DUFFY, ISBN NO;
9781266318559, ALL 22 CHAPTERS COVERED
Page 1 of 227
, Test Bank for Farm Management 10th Edition (McGraw Hill, 2023) by Ronald D. Kay,
William M. Edwards and Patricia A. Duffy, Isbn no; 9781266318559, all 22 Chapters Covered
TABLE OF CONTENTS
Part I – Management
1. Farm Management Now and In the Future
2. Management and Decision Making
Part II – Measuring Management Performance
3. Acquiring and Organizing Management Information
4. The Balance Sheet and Its Analysis
5. The Income Statement and Its Analysis
6. Farm Business Analysis
Part III – Applying Economic Principles
7. Economic Principles – Choosing Production Levels
8. Economic Principles – Choosing Input and Output Combinations
9. Cost Concepts and Decision Making
Part IV – Budgeting for Greater Profit
10. Enterprise Budgeting
11. Whole-Farm Planning
12. Partial Budgeting
13. Cash Flow Budgeting
Part V – Improving Management Skills
14. Farm Business Organization and Transfer
15. Managing Risk and Uncertainty
16. Managing Income Taxes
17. Investment Analysis
18. Enterprise Analysis
Part VI – Acquiring Resources for Management
19. Capital and Credit
20. Land – Control and Use
21. Human Resource Management
22. Machinery Management
Page 2 of 227
, Test Bank for Farm Management 10th Edition (McGraw Hill, 2023) by Ronald D. Kay,
William M. Edwards and Patricia A. Duffy, Isbn no; 9781266318559, all 22 Chapters Covered
Chapter 1.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) In the future, farm managers will have to be concerned about the environmental effects of
their practices on their own farms, but not away from their own farm.
⊚ true
⊚ false
2) Standardized accounting practices for farming operations will make comparisons with
other farms and nonfarm businesses more meaningful.
⊚ true
⊚ false
3) One of the most important areas in which advances in electronics can help farm managers
is in collecting the raw data needed to make better decisions.
⊚ true
⊚ false
4) Since farm managers will be making the same basic types of decisions in the 21st century
as they did in the previous century, they can rely on rules of thumb to guide their actions.
⊚ true
⊚ false
5) Product differentiation means producing crops and livestock with different characteristics
for specific markets.
⊚ true
⊚ false
Page 3 of 227
, 6) Entering into vertical integration alliances helps farms or ranches become more
independent.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the
question.
7) One force that has helped cause farms in the United States to become larger and fewer is
A) competition from foreign producers.
B) lower production costs per unit by spreading fixed investment in technology over more
units.
C) more labor used in agricultural production.
D) declining nonfarm wage rates.
8) Improved data collection technology such as satellite or drone-based photography will be
most helpful to farm managers for
A) preparing up-to-date financial statements.
B) balancing livestock rations.
C) prescribing fertility and pest control practices for smaller land units.
D) producing more uniform products.
9) Standardization of farm financial ratios and accounting practices will help farm managers
A) compete with nonfarm businesses for capital.
B) summarize their account books in less time.
C) pay less income tax.
D) manage hired employees more effectively.
Page 4 of 227
FARM MANAGEMENT 10TH EDITION (MCGRAW
HILL, 2023) BY RONALD D. KAY, WILLIAM M.
EDWARDS AND PATRICIA A. DUFFY, ISBN NO;
9781266318559, ALL 22 CHAPTERS COVERED
Page 1 of 227
, Test Bank for Farm Management 10th Edition (McGraw Hill, 2023) by Ronald D. Kay,
William M. Edwards and Patricia A. Duffy, Isbn no; 9781266318559, all 22 Chapters Covered
TABLE OF CONTENTS
Part I – Management
1. Farm Management Now and In the Future
2. Management and Decision Making
Part II – Measuring Management Performance
3. Acquiring and Organizing Management Information
4. The Balance Sheet and Its Analysis
5. The Income Statement and Its Analysis
6. Farm Business Analysis
Part III – Applying Economic Principles
7. Economic Principles – Choosing Production Levels
8. Economic Principles – Choosing Input and Output Combinations
9. Cost Concepts and Decision Making
Part IV – Budgeting for Greater Profit
10. Enterprise Budgeting
11. Whole-Farm Planning
12. Partial Budgeting
13. Cash Flow Budgeting
Part V – Improving Management Skills
14. Farm Business Organization and Transfer
15. Managing Risk and Uncertainty
16. Managing Income Taxes
17. Investment Analysis
18. Enterprise Analysis
Part VI – Acquiring Resources for Management
19. Capital and Credit
20. Land – Control and Use
21. Human Resource Management
22. Machinery Management
Page 2 of 227
, Test Bank for Farm Management 10th Edition (McGraw Hill, 2023) by Ronald D. Kay,
William M. Edwards and Patricia A. Duffy, Isbn no; 9781266318559, all 22 Chapters Covered
Chapter 1.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) In the future, farm managers will have to be concerned about the environmental effects of
their practices on their own farms, but not away from their own farm.
⊚ true
⊚ false
2) Standardized accounting practices for farming operations will make comparisons with
other farms and nonfarm businesses more meaningful.
⊚ true
⊚ false
3) One of the most important areas in which advances in electronics can help farm managers
is in collecting the raw data needed to make better decisions.
⊚ true
⊚ false
4) Since farm managers will be making the same basic types of decisions in the 21st century
as they did in the previous century, they can rely on rules of thumb to guide their actions.
⊚ true
⊚ false
5) Product differentiation means producing crops and livestock with different characteristics
for specific markets.
⊚ true
⊚ false
Page 3 of 227
, 6) Entering into vertical integration alliances helps farms or ranches become more
independent.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the
question.
7) One force that has helped cause farms in the United States to become larger and fewer is
A) competition from foreign producers.
B) lower production costs per unit by spreading fixed investment in technology over more
units.
C) more labor used in agricultural production.
D) declining nonfarm wage rates.
8) Improved data collection technology such as satellite or drone-based photography will be
most helpful to farm managers for
A) preparing up-to-date financial statements.
B) balancing livestock rations.
C) prescribing fertility and pest control practices for smaller land units.
D) producing more uniform products.
9) Standardization of farm financial ratios and accounting practices will help farm managers
A) compete with nonfarm businesses for capital.
B) summarize their account books in less time.
C) pay less income tax.
D) manage hired employees more effectively.
Page 4 of 227
