Farm and Ranch Management - Exam
4 questions n answers
provides an estimate of potential revenue, expenses, and profit for a single enterprise - correct
answer ✔✔Enterprise budget
Seed, fuel, fertilizer, chemicals, labor, storage costs - correct answer ✔✔Variable costs
land, equipment, buildings - correct answer ✔✔Fixed costs
What are examples on non-cash costs? - correct answer ✔✔Interest, Labor, Depreciation
the profit or return shown on an economic budget - correct answer ✔✔economic profit
all cash and noncash revenue from the crop - correct answer ✔✔revenue
all costs that would be incurred only if the crop is produced - correct answer ✔✔operating or
variable expenses
costs that must be paid even if no crop is produced - correct answer ✔✔ownership or fixed
expenses
represents a return to all resources that were not charged in the budge (usually management
and someimes land) - correct answer ✔✔Profit
, What should occur when the income above variable costs or gross margin value isn't positive? -
correct answer ✔✔the enterprise should no be produced
shows how much an acre of this enterprise will contribute towards the payment of the fixed
costs - correct answer ✔✔gross margin
Gross margin gives an indication of - correct answer ✔✔income above variable costs, shutdown
point in the short run, and the enterprise's contribution towards the fixed costs
A projected economic profit of zero means that the enterprise is not profitable - correct answer
✔✔False
- it means that all of the opportunity costs are being paid
A projected economic profit of zero means - correct answer ✔✔land, labor and capital are
earning exactly their opportunity costs
cost of production = - correct answer ✔✔total cost/yield
break-even yield = - correct answer ✔✔total cost/output price
break-even price - correct answer ✔✔total cost/expected yield
What questions do you ask when making a partial budget? - correct 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?
4 questions n answers
provides an estimate of potential revenue, expenses, and profit for a single enterprise - correct
answer ✔✔Enterprise budget
Seed, fuel, fertilizer, chemicals, labor, storage costs - correct answer ✔✔Variable costs
land, equipment, buildings - correct answer ✔✔Fixed costs
What are examples on non-cash costs? - correct answer ✔✔Interest, Labor, Depreciation
the profit or return shown on an economic budget - correct answer ✔✔economic profit
all cash and noncash revenue from the crop - correct answer ✔✔revenue
all costs that would be incurred only if the crop is produced - correct answer ✔✔operating or
variable expenses
costs that must be paid even if no crop is produced - correct answer ✔✔ownership or fixed
expenses
represents a return to all resources that were not charged in the budge (usually management
and someimes land) - correct answer ✔✔Profit
, What should occur when the income above variable costs or gross margin value isn't positive? -
correct answer ✔✔the enterprise should no be produced
shows how much an acre of this enterprise will contribute towards the payment of the fixed
costs - correct answer ✔✔gross margin
Gross margin gives an indication of - correct answer ✔✔income above variable costs, shutdown
point in the short run, and the enterprise's contribution towards the fixed costs
A projected economic profit of zero means that the enterprise is not profitable - correct answer
✔✔False
- it means that all of the opportunity costs are being paid
A projected economic profit of zero means - correct answer ✔✔land, labor and capital are
earning exactly their opportunity costs
cost of production = - correct answer ✔✔total cost/yield
break-even yield = - correct answer ✔✔total cost/output price
break-even price - correct answer ✔✔total cost/expected yield
What questions do you ask when making a partial budget? - correct 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?
