IV. Agricultural Economics and Marketing Flashcards
- The benefits to society regardless of who in the society receives the benefits.
A. Financial benefit
B. Economic benefit
C. Revenue
D. Sales
Answer: B
- Benefits less costs excluding depreciation.
A. Profit
B. Net benefit
C. Cash flow
D. Economic benefits
Answer: C
- Which one is a one-time expense?
A. Investment
B. Single cost
C. One-time cost
D. Operating cost
Answer: A
- Annually recurring cost.
A. Investment
B. Operating cost
C. Contingency
D. Operating capital
Answer: B
- Land is an example of
A. Investment
B. Operating cost
C. Contingency
D. Operating capital
Answer: A
- Manager’s salary is an example of
A. Investment
B. Operating cost
C. Maintenance cost
D. Operating capital
Answer: B
- The cash component of investment.
A. Cash investment
B. Operating cost
C. Contingency
D. Operating capital
Answer: D
- Contingency is normally what percentage of investment cost?
A. 5%
B. 10%
C. 15%
D. 20%
Answer: B
- The scrap value of a property?
A. Salvage value
B. Economic value
C. Book value
D. End value
Answer: A
- What is market price deducted by tax.
A. Discounted price
B. Taxed price
C. Shadow price
D. Economic price
Answer: C
- The equivalent value of a property at any given year.
A. Salvage value
B. Economic value
C. Book value
D. End value
Answer: C
- Using simplest computation method, what is the annual depreciation of a tractor purchased at Php 2,500,000 if its life span is assumed at 8 years? Salvage value is 10%.
A. Php 218,250
B. Php 281,250
C. Php 821,250
D. Php 250,281
Answer: B
Solution: Depreciation = (Php2,500,000-Php250,000)/8 years = Php 281,250/year
- What feasibility indicator is best for determining how fast the project recovers the investment?
A. NPV
B. IRR
C. BCR
D. Payback period
Answer: D
- What feasibility indicator is best for determining how much can you gain from a certain project?
A. NPV
B. IRR
C. BCR
D. Payback period
Answer: A
- What feasibility indicator is normally compared to bank’s interest rate?
A. NPV
B. IRR
C. BCR
D. Payback period
Answer: B