Analysis Techniques Quiz

Froggy Jumps

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Key concepts in budgets, margins and risk

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B'shaan

Australia

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Froggy Jumps Analysis Techniques QuizOnline version Key concepts in budgets, margins and risk by B'shaan 1 What is the Partial Budget (PB)? a A method to measure output quality b A plan for long-term investment c Looks at income & costs that change when making decision 2 Which steps are included in EQ PB (Partial Budget)? a Steps: 2,4,6,8 b Steps: 1,3,5,7 c Steps: 1,2,3,4 3 What is a strength of the Partial Budget? a simple, focuses attn on what matters b complicates analysis with many factors c needs advanced software to run 4 What is a weakness of the Partial Budget? a always yields exact results b framework changes for each decision, many factors may be affected c requires large capital outlay 5 What is GM (Gross Margin)? a Fixed costs minus variable costs b Total revenue c Income - variable costs 6 When is Gross Margin appropriate? a Only for dairy farms b Use when FC change c Use when FC don’t change e.g. land, labour, machinery & management 7 What is Benchmarking? a To compare farm's performance with other farms or groups to identify areas for improvement b A way to set prices for sales c A method to forecast prices 8 What is COP? a Cost of producing 1 unit of output b Cost of marketing c Cost of packaging 9 What is risk? a The fixed cost of production b a range of possible outcomes. Influenced by season, prices & regulations c A guaranteed profit 10 What is Expected Value? a The maximum possible profit b A single-year forecast c The average profit or production you would expect over many years if you repeated the same decision

Froggy Jumps

Analysis Techniques QuizOnline version

Key concepts in budgets, margins and risk

by B'shaan

What is the Partial Budget (PB)?

A method to measure output quality

A plan for long-term investment

Looks at income & costs that change when making decision

Which steps are included in EQ PB (Partial Budget)?

Steps: 2,4,6,8

Steps: 1,3,5,7

Steps: 1,2,3,4

What is a strength of the Partial Budget?

simple, focuses attn on what matters

complicates analysis with many factors

needs advanced software to run

What is a weakness of the Partial Budget?

always yields exact results

framework changes for each decision, many factors may be affected

requires large capital outlay

What is GM (Gross Margin)?

Fixed costs minus variable costs

Total revenue

Income - variable costs

When is Gross Margin appropriate?

Only for dairy farms

Use when FC change

Use when FC don’t change e.g. land, labour, machinery & management

What is Benchmarking?

To compare farm's performance with other farms or groups to identify areas for improvement

A way to set prices for sales

A method to forecast prices

What is COP?

Cost of producing 1 unit of output

Cost of marketing

Cost of packaging

What is risk?

The fixed cost of production

a range of possible outcomes. Influenced by season, prices & regulations

A guaranteed profit

What is Expected Value?

The maximum possible profit

A single-year forecast

The average profit or production you would expect over many years if you repeated the same decision

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Analysis Techniques Quiz

Froggy Jumps

About this activity

Created by

Download the paper version to play

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Froggy Jumps

Analysis Techniques QuizOnline version

by B'shaan

What is the Partial Budget (PB)?

Which steps are included in EQ PB (Partial Budget)?

What is a strength of the Partial Budget?

What is a weakness of the Partial Budget?

What is GM (Gross Margin)?

When is Gross Margin appropriate?

What is Benchmarking?

What is COP?

What is risk?

What is Expected Value?