ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Totaling acres
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Crop enterprise budget
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Helping the operator analyze important adjustments in the farm operation
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Deciding what crop to plant on a small plot
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Detailed explanation-1: -What Is Partial Budgeting? Partial budgeting is a planning and decision-making framework used to compare the costs and benefits of alternatives faced by a farm business. It focuses only on the changes in income and expenses that would result from implementing a specific alternative.
Detailed explanation-2: -iii) Complete budgeting is used for estimating the results of entire organization and operation of a farm, while partial budget helps only to study the net effects in terms of costs and returns of relatively minor changes.
Detailed explanation-3: -Only variable costs are considered.
Detailed explanation-4: -The partial budget has four categorical parts: additional income, reduced costs, reduced income and additional costs. Additional income. A proposed change may bring additional income from an enterprise if it is added or increased in size or if output is increased for the particular enterprise.