15. Enterprise Budgets

Question 1

Define: Enterprise Budgets

Answer 1

Used to evaluate costs and returns of a business enterprise - is it profitable?
Used to manage for improved profit
Essential for determining where money is coming from and going to
Gross v net revenue/profits
Budgets - prediction of future investments and returns

Question 2

Define: Breakeven Prices

Answer 2

What is the price needed to receive for a product that covers all the expenses so you break even?

Question 3

When can enterprise budgets be used?

Answer 3

For the overall operation
Can evaluate different parts of the operation as separate enterprises

Question 4

What is the single largest cost in any animal rearing enterprise?

Answer 4

Feed for the animals (50-70% of total operating expenses)

Question 5

What type of cost is veterinary expenses in the animal rearing enterprise?

Answer 5

Variable cost
One of the things a producer may elect to cut if they dont see return on investment