ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Comparing profitability of several farm plans
|
|
|
Determining income possibilities
|
|
|
Totaling the number of acres
|
|
|
Learning the worth of a ranch
|
Detailed explanation-1: -A whole-farm budget is used to estimate the expected income, expenses, and profit of a given farm plan, to compare the profitability of alternative farm plans, and often to evaluate the effect of a change in farm size and estimate the availability of farm resources (land, labor, capital, and management).
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: -Types of farm budgeting: There are two types (methods) of farm budgeting. a) Partial budgeting b) Complete budgeting.
Detailed explanation-4: -The correct answer is option D. Preventing net operating losses is not a part of budgeting.