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Identify the type of budget used for EACH of the following scenarios: 4.1.1 A farmer wants to add a new processing unit to the farm - English General - NSC Agricultural Management Practices - Question 4 - 2022 - Paper 1
Question 4
Identify the type of budget used for EACH of the following scenarios: 4.1.1 A farmer wants to add a new processing unit to the farm. 4.1.2 A farmer needs seasonal ... show full transcript
Worked Solution & Example Answer:Identify the type of budget used for EACH of the following scenarios: 4.1.1 A farmer wants to add a new processing unit to the farm - English General - NSC Agricultural Management Practices - Question 4 - 2022 - Paper 1
Step 1
Step 2
Step 3
Step 4
4.1.4 A farmer wants to have the totals of the possible income and the possible expenditure of the different production enterprises as one combined document.
Answer
In this case, a Whole Farm Budget is appropriate as it consolidates all potential income and expenditures across various production enterprises into a single document.
Step 5
State THREE main features of a cash-flow budget.
Answer
- It indicates the timing of cash inflows and outflows, helping to manage liquidity.
- It records actual income and expenses in the order they occur, rather than as per different activities.
- It is typically set for a specific period, such as a season or one year.