Ag Business Budgeting

Select two of the four factors of production that we budget for

• Land

• Capital

• Fiber

• Fuel

What is a reason for using a budget?

• Show off how much money you have

• Obtain recognition

• Plan life of assets

• Plan life of animals

Select the three types of budgeting discussed in class

• Enterprise

• Partial

• Farm

• Whole Farm

A principle of budgeting is to invest more if returns increase

• True

• False

The purpose of enterprise budgeting is to determine breakeven levels

• True

• False

The purpose of partial budgeting is to expand an enterprise

• True

• False

A good source of information for budgeting is farm and ranch records

• True

• False

The final step of developing a budget is the appraisal of components

• True

• False

When budgeting, it is important to estimate numbers on a per cent basis

• True

• False

Land Payment is an example of:

• Gross Income

• Variable Cost

• Fixed Cost