AGEC 308 Exam 3 (KSU) Yeager
questions well answered
Which of the following may be included on a partial budget? - correct answer ✔✔- ownership
costs
- operating costs
- opportunity costs
Answer= all of the above
Which of the following are the profit increasing changes on a partial budget? - correct answer
✔✔Reduced costs and additional revenue
IF a partial budget shows some fixed or ownership costs under Reduces costs, it means? -
correct answer ✔✔The proposed alternative would include the sale of a capital asset that will
no longer be needed
A partial budget would be the most useful type of budget for estimating? - correct answer
✔✔The change in profit from installing an irrigation system in one feild.
A partial budget is an appropriate tool for anylizing? - correct answer ✔✔The expansion of an
existing enterprise
ON a partial budget which analyses switching 120 acres from growing wheat to growing barley,,
which of the following costs would not be included on the budget? - correct answer
✔✔Property tax on the land
, A partial budget includes only revenue and costs that would__________ as a result of a change
in a certain management practice. - correct answer ✔✔increase or decrease
The purpose of completing a partial budget is? - correct answer ✔✔To evaluate the effect on
profit of one particular management change.
Evaluating the riskiness of a particular change being analysed with a partial budget by varying
one or more key values is called? - correct answer ✔✔Sensitivity Analysis
In short Run - correct answer ✔✔Total variable costs are zero when there is no production
The opportunity cost of one more unit of a variable input is: - correct answer ✔✔The return
from using that input in its nest best alternative use
The marginal cost curve: - correct answer ✔✔will eventually increase as output is increased
The total revenue is less than total variable cost - correct answer ✔✔In short run, production
should be discontinued whenever:
Which of the following costs are computed per unit of output? - correct answer ✔✔AFC
AVC
ATC
Answer: All the above.
The long-run interest cost for an investment in a fixed asset is found by multiplying the interest
rate by the : - correct answer ✔✔The average of the initial purchase price and the salvage value
of the asset.
questions well answered
Which of the following may be included on a partial budget? - correct answer ✔✔- ownership
costs
- operating costs
- opportunity costs
Answer= all of the above
Which of the following are the profit increasing changes on a partial budget? - correct answer
✔✔Reduced costs and additional revenue
IF a partial budget shows some fixed or ownership costs under Reduces costs, it means? -
correct answer ✔✔The proposed alternative would include the sale of a capital asset that will
no longer be needed
A partial budget would be the most useful type of budget for estimating? - correct answer
✔✔The change in profit from installing an irrigation system in one feild.
A partial budget is an appropriate tool for anylizing? - correct answer ✔✔The expansion of an
existing enterprise
ON a partial budget which analyses switching 120 acres from growing wheat to growing barley,,
which of the following costs would not be included on the budget? - correct answer
✔✔Property tax on the land
, A partial budget includes only revenue and costs that would__________ as a result of a change
in a certain management practice. - correct answer ✔✔increase or decrease
The purpose of completing a partial budget is? - correct answer ✔✔To evaluate the effect on
profit of one particular management change.
Evaluating the riskiness of a particular change being analysed with a partial budget by varying
one or more key values is called? - correct answer ✔✔Sensitivity Analysis
In short Run - correct answer ✔✔Total variable costs are zero when there is no production
The opportunity cost of one more unit of a variable input is: - correct answer ✔✔The return
from using that input in its nest best alternative use
The marginal cost curve: - correct answer ✔✔will eventually increase as output is increased
The total revenue is less than total variable cost - correct answer ✔✔In short run, production
should be discontinued whenever:
Which of the following costs are computed per unit of output? - correct answer ✔✔AFC
AVC
ATC
Answer: All the above.
The long-run interest cost for an investment in a fixed asset is found by multiplying the interest
rate by the : - correct answer ✔✔The average of the initial purchase price and the salvage value
of the asset.
