AGEC 325 Exam 3 Questions and
Answers Graded A+
In whole farm planning it is assumed that when ___________ is maximized, total
profit is also maximized. - Correct answer-total gross margin
The purpose of completing a whole farm budget is: - Correct answer-to estimate
the net income from all enterprises combined
Sensitivity analysis looks at the change in total profit caused by: - Correct answer-
any of the above
-a change in selling prices
-a change in yields
-a change in the price of key input
The purpose of liquidity analysis is to estimate if: - Correct answer-cash inflows
will be sufficient to meet expected cash outflows
A whole-farm budget contains - Correct answer-costs, returns, and resource needs
for a specific set of enterprises
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, If an acre of alfalfa requires $75 of operating capital and 5 hours of labor, and a
farm has 70 acres of land, 400 hours of labor, and $4,500 of operating capital
available, the maximum acres of alfalfa that can be grown is: - Correct answer-60
Which of the following may be included on a partial budget? - Correct answer-
ownership costs
operating costs
opportunity costs
all of the above
Which of the following are the profit increasing changes on a partial budget? -
Correct answer-reduced costs and additional revenue
A partial budget is designed to analyze the effect of a proposed management
change on - Correct answer-profit
On a partial budget which analyzes switching 120 acres from growing wheat to
growing barley, which of the following costs would not be included on the budget?
- Correct answer-property tax on the land
The values shown on a partial budget are: - Correct answer-only changes in
revenues and expenses for the farm
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers Graded A+
In whole farm planning it is assumed that when ___________ is maximized, total
profit is also maximized. - Correct answer-total gross margin
The purpose of completing a whole farm budget is: - Correct answer-to estimate
the net income from all enterprises combined
Sensitivity analysis looks at the change in total profit caused by: - Correct answer-
any of the above
-a change in selling prices
-a change in yields
-a change in the price of key input
The purpose of liquidity analysis is to estimate if: - Correct answer-cash inflows
will be sufficient to meet expected cash outflows
A whole-farm budget contains - Correct answer-costs, returns, and resource needs
for a specific set of enterprises
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, If an acre of alfalfa requires $75 of operating capital and 5 hours of labor, and a
farm has 70 acres of land, 400 hours of labor, and $4,500 of operating capital
available, the maximum acres of alfalfa that can be grown is: - Correct answer-60
Which of the following may be included on a partial budget? - Correct answer-
ownership costs
operating costs
opportunity costs
all of the above
Which of the following are the profit increasing changes on a partial budget? -
Correct answer-reduced costs and additional revenue
A partial budget is designed to analyze the effect of a proposed management
change on - Correct answer-profit
On a partial budget which analyzes switching 120 acres from growing wheat to
growing barley, which of the following costs would not be included on the budget?
- Correct answer-property tax on the land
The values shown on a partial budget are: - Correct answer-only changes in
revenues and expenses for the farm
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
