AGEC 271 - Farm and Ranch
Management exam 3 questions well
answered
In order to find the breakeven selling price for a commodity, you first must subtract _____ from
total costs.
a. Miscellaneous costs
b. Depreciation
c. Income from other sources beside sale of the commodity
d. Opportunity costs - correct answer ✔✔c. Income from other sources beside sale of the
commodity
In an enterprise budget "income over variable costs" is another name for what?
a. gross margin.
b. gross income.
c. net income.
d. break-even selling price. - correct answer ✔✔a. gross margin
T/F An enterprise budget lists all the returns and expenses associated with producing a unit of a
given enterprise. - correct answer ✔✔True
The unit for a crop enterprise budget is usually
a. One acre or hectare
b. One bushel of output
c. A section of land (640 acers)
, d. 100 lbs of output - correct answer ✔✔a. one acre or hectare
T/F If the cost of production is greater than the selling price, the revenue from the enterprise
will be less than the total economic costs. - correct answer ✔✔True
T/F There is only one possible enterprise budget for each species of livestock. - correct answer
✔✔False
T/F The cost of production is the same as average total cost. - correct answer ✔✔True
T/F for a given total cost, the higher the yield, the lower the break-even price. - correct answer
✔✔True
T/F Only cash revenues are included on an enterprise budget. - correct answer ✔✔False
T/F It is safe to assume that the input levels shown on published enterprise budgets are the
profit maximizing amounts. - correct answer ✔✔False
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.
a. lower than
b. higher than
c. just equal to
d. higher than, lower than, or equal to - correct answer ✔✔c. just equal to
T/F Some enterprises may have more than one source of revenue. - correct answer ✔✔True
T/F Only cash expenses are included on an enterprise budget. - correct answer ✔✔False
Management exam 3 questions well
answered
In order to find the breakeven selling price for a commodity, you first must subtract _____ from
total costs.
a. Miscellaneous costs
b. Depreciation
c. Income from other sources beside sale of the commodity
d. Opportunity costs - correct answer ✔✔c. Income from other sources beside sale of the
commodity
In an enterprise budget "income over variable costs" is another name for what?
a. gross margin.
b. gross income.
c. net income.
d. break-even selling price. - correct answer ✔✔a. gross margin
T/F An enterprise budget lists all the returns and expenses associated with producing a unit of a
given enterprise. - correct answer ✔✔True
The unit for a crop enterprise budget is usually
a. One acre or hectare
b. One bushel of output
c. A section of land (640 acers)
, d. 100 lbs of output - correct answer ✔✔a. one acre or hectare
T/F If the cost of production is greater than the selling price, the revenue from the enterprise
will be less than the total economic costs. - correct answer ✔✔True
T/F There is only one possible enterprise budget for each species of livestock. - correct answer
✔✔False
T/F The cost of production is the same as average total cost. - correct answer ✔✔True
T/F for a given total cost, the higher the yield, the lower the break-even price. - correct answer
✔✔True
T/F Only cash revenues are included on an enterprise budget. - correct answer ✔✔False
T/F It is safe to assume that the input levels shown on published enterprise budgets are the
profit maximizing amounts. - correct answer ✔✔False
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.
a. lower than
b. higher than
c. just equal to
d. higher than, lower than, or equal to - correct answer ✔✔c. just equal to
T/F Some enterprises may have more than one source of revenue. - correct answer ✔✔True
T/F Only cash expenses are included on an enterprise budget. - correct answer ✔✔False
