Animal Management

Question 1

Productivity

Answer 1

A measure of the efficiency of conversion of inputs into outputs

Question 2

Key tools of farm business analysis

Answer 2

Gross margin analysis
Partial budgets
Investment appraisal
Financial feasibility
Decision tree analysis
Cost-effectiveness analysis

Question 3

Gross margin analysis

Answer 3

Gross margin = output - variable costs
Not a measure of profitability
Measures efficiency of conversion of variable costs into outputs
Used to assess and compare different enterprises

Question 4

Importance of understanding farm business for vets

Answer 4

To account for cost effectiveness when giving recommendations
Awareness of the situation and pressures facing the farmer
Practices may provide data analysis services

Question 5

Variable costs

Answer 5

Costs that vary short term according to the scale of production
eg feed, drugs, vaccines

Question 6

Fixed costs

Answer 6

Costs that vary in the long term
Will still exist even if no production occurs
eg staff salaries, admin, rent, maintenance, depreciation, interest