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?
Enterprise budget The last budget, the enterprise budget, is an estima-tion of all revenues and expenses for a farm or ranch enterprise during one cycle of production.
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