Question

9. Which type of budget would be most useful for determining the breakeven price for selling...

9. Which type of budget would be most useful for determining the breakeven price for selling milk produced by a dairy?

a.

Cash flow budget
b.

Enterprise budget
c.

Partial budget
d.

Whole farm budget

10. Debt that you expect to pay back at set intervals over a time period greater than one year is:

a.

Scheduled, current debt.
b.

Non-scheduled, non-current debt.
c.

Scheduled, non-current debt.
d.

Non-scheduled, current debt.
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Homework Answers

Answer #1

1) Solution: Whole farm budget

Explanation: Cash budget makes an estimation of the cash inflows and outflows of an entity, whereas a break even analysis makes an estimation of the number of units of product that an entity needs to sell in order for avoiding the losses.

2) Solution: Scheduled, non-current debt

Explanation: The non-current debt matures in more than one year; and if it is scheduled it indicates a periodic payment at a set intervals over a time period

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