Exercise 9: Basic Cost and Return Analysis Flashcards
1
Q
ENTREPRENEUR
A
- organizes and manages any enterprise
2
Q
ESSENTIAL ELEMENTS OF ENTREPRENEURSHIP
A
- opportunity identification
- resource allocation
- value creation/addition
- risk-taking
3
Q
FARMER AS ENTREPRENEUR
A
- minimize production cost without sacrificing yield
- increase yields with same or minimal added cost
4
Q
COST & RETURN ANALYSIS
A
- accounting money to determine the profitability of a business
5
Q
NET FARM INCOME: FORMULA
A
net farm income = total revenue - total costs
6
Q
TOTAL COST
A
- expenses incurred
7
Q
TOTAL COST: FORMULA
A
total cost = cash cost + non-cash cost + imputed cost
8
Q
CASH COST
A
- expenses directly paid with cash
9
Q
NON-CASH COST
A
- expenses not paid with cash
10
Q
IMPUTED COST
A
- expenses for owned resources that are utilized in production
- e.g. stored seed, excess fertilizer
11
Q
TOTAL REVENUE
A
- total value earned
12
Q
TOTAL REVENUE: FORMULA
A
total revenue = cash revenue + non-cash revenue
13
Q
CASH REVENUE
A
- earnings from commodities converted to cash
14
Q
NON-CASH REVENUE
A
- earnings not converted to cash
15
Q
ECONOMIC PARAMETERS
A
- gross returns
- farmgate price
- net returns
- breakeven yield
- net profit-cost ratio
