Budgeting in agriculture

What is budgeting

• Preparing to farm and canceling depts

• An estimate of expected income, expenses and profit

• Taking care of expenses

Long term planning is used for the production of

• Broilers

• Lettuces

• Milk

• Tomatoes

Long term planning is used for the production of

• Broilers

• Lettuces

• Milk

• Tomatoes

A farming enterprise recorded that the income from the sale of broilers was $80,000. The fixed cost were $2,500 and the variable costs were $26,000. The farm profit was

• $80,000-$2,500

• $80,000-$2,500

• $80,000-$28,500

• $80,000-$26,500

Gross margin is:

• Gross income - variable cost

• Gross income -fixed cost

• Gross income - total cost

• Gross income - net income

The following are reasons for budgeting EXCEPT?

• Allows farmer to compare the profitability of different enterprises

• Provides documentary evidence for financial institutions when loan application is made

• Makes It easier for farmer to control the finances of the farm

• Make the farmer aware of the amount of time spend on the far per worker

Farm income is earned by:

• Producing and selling ideas

• Producing and selling stock markets

• Producing and selling comodities

• Producing and selling markets

The difference between fixed and variable cost is

• Variable cost vary based on the amount of output, while fixed cost are the same regardless of production output

• Fixed cost vary based on the amount of output, while variable cost are the same regardless of production putput

• Variable cost is steady while fixed cost vary

Difference between complete and partial budget

• Partial budgeting accounts for the drastic changes in the organization and operation while complete budgeting treats minor changes only

• Partial budgeting changes while complete budgeting does not

• Complete budgeting accounts for the drastic changes in the organization and operation while partial budgeting treats minor changes only

The following below are variable expenses:

• Depreciation, feed, electricity

• Electricity, feed, litter