Enterprise budget

By analyzing revenues and expenses associated with individual enterprises a manager can determine which enterprises might be _________ (2 answers)

• expanded

• eliminated

• combined

• separated

Choose the correct answers (2 answers)

• Each type of crop or livestock is an enterprise

• The base unit for crops is usually one hectare

• The base unit for livestock may be one head

• Using different units allows an easy and fair comparison across different enterprises

The concept of ____________ should be used to value any noncash sources of revenue

• initial cost

• scrap value

• opportunity cost

• book cost

All costs that would be incurred only if the crop is produced is called

• Operating cost

• Ownership cost

• Fixed cost

• Non-operating cost

Cost that must be paid even if no crop is produced is called 

• Operating cost

• Fixed cost

• Variable cost

• Depreciation cost

Income above variable cost =

• Price x Quantity

• Total variable costs + Total fixed costs

• Total revenue - Total cost

• Total revenue - Total variable costs

Cost of production will change if either _______ or _______ change.

• sale price

• yields

• costs

• income

The _________ occurs when total receipts equal total costs.

• break-even point

• break-even yield

• break-even price

• cost of production

When two crops are grown on the same land in the same year, budgets should be _______ and ________ (2 answers)

• the annual ownership costs for land divided between the two crops

• combined for the two crops

• the ownership costs should be share between the two crops

• developed for each crop

Break-even yield =

• Total cost/output price

• Total cost/output yield

• Total cost/yield

• Total annual fixed cost/(custom rate - variable cost per unit)