Transcription of Understanding budgets and the budgeting process
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Understanding budgets and the budgeting process
ALTERNATIVE AGRICULTURAL ENTERPRISES PRODUCTION, MANAGEMENT & MARKETINGC ooperative Extension System z Agricultural Experiment Station z CIS 945 Understanding budgetsand the budgeting processR. L. SmathersAs a business owner, the primary problem you face isa limited supply of resources land, labor, andcapital available to accomplish your goals. Allocatingthese scarce resources entails making many decisions might include: What should I growthis year? How much fertilizer should I apply?Should I replace my worn-out tractor? Should Iexpand by purchasing or renting additional land? Theanswers to these questions could influence theprofitability of your operation for years to of the scope of the issue being considered,you must sit down with pencil and paper and analyzethe question.
cost of establishing the apple crop and interest on those costs over the establishment years ($6,000 per acre) could be viewed as a loan to be paid back over
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