| Term | Definition |
|---|
| four factors of production | capital, labor, land, and management |
| what is a budget | a plan for action by the business |
| reasons for budgeting | helps plan for useful life of assets, an excellent device fore organizing, useful when you need credit from lending agencies, allows experimentation with possible outcomes before resources are actually commited, lets you refine and organization |
| three types of budgets | enterprise, partial, and whole farm |
| a budget is only as good as the ____ you use. | data |
| enterprise budget | individual items |
| two categories of the cost component of enterprise bugets | variable or operating, and fixed |
| types of operating enterprises | seed, feed, fertilizer, normal repairs, hourly labor |
| fixed enterprises | depriciation, interest, insurance, taxes on realestate |
| what are break even prices | prices necessary to just cover variable operating costs or total costs |
| what is a whole farm budget | one budget for everything |
| partial budget | projected costs and returns associated with some change in the business operations |
| four situations where partial budgeting is useful | expanding and enterprise, altnernative enterprises, changing produciton practices, buying new equipment |
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