Provides an estimate of the feasibility of making investments in long-term assets
What is capital budget
100
A comprehensive system for recording and summarizing business transactions
What is accounting
100
Costs that do not change with the level of production
What is fixed costs
100
An annuity that continues forever
What is perpetuity
100
Gross income less certain expenses
What is net return
200
Provides a listing of all income and expenses associated with a particular enterprise
What is enterprise budget
200
The original cost of an asset minus the depreciation expense taken to date
What is book value
200
Costs that change in direct proportion to changes in volume
What is variable cost
200
Determining the future value of a current amount in which the interest remains with the principal and becomes part of the principal for computing interest in the next period
What is compounding
200
The value represented by net income from operations, plus interest expense, minus the opportunity cost of operator labor and management
What is return on assets
300
Used to calculate the effect on the profits of the proposed change in a portion of the operation
What is partial budget
300
An annual non-cash expense to recognize the amount by which an asset loses value due to use, age, and obsolescence
What is depreciation
300
Costs that require an outlay of cash during the planning.
What is cash cost
300
The reverse of compounding
What is discounting
300
The value represented by net farm income from operations minus the opportunity cost of operating labor and management
What is return on equity
400
An estimate of income and expenses for one unit of an enterprise
What is unit budget
400
An accounting system in which changes in assets and liabilities as well as income and expenses are recorded
What is double-entry accounting
400
Costs paid outside the business
What is explicit cost
400
The current value of one or more payments to be received or paid in the future
What is present value
400
The net return generated by a business after all expenses have been paid and the opportunity cost for owners equity and unpaid labor have been subtracted
What is return to management
500
A projection of the total production, income, and expenses of a farm business for a whole farm plan
What is whole farm budget
500
The market value of a depreciable asset the time it is sold or removed
What is salvage value
500
The cost of using a resource based on what it could have earned if used for the next best alternative
What is opportunity cost
500
The discount or interest rate at which the net present value of an investment is equal to zero
What is internal rate of return
500
The net return generated by a business after all expenses have been deducted and the opportunity cost of owners equity (but not unpaid operators labor) has been subtracted