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4.1 Explain the following statement: A budget has both a planning function and a control function - NSC Agricultural Management Practices - Question 4 - 2022 - Paper 1

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4.1 Explain the following statement: A budget has both a planning function and a control function. 4.2 The basic elements of a budget for a crop production enterpri... show full transcript

Worked Solution & Example Answer:4.1 Explain the following statement: A budget has both a planning function and a control function - NSC Agricultural Management Practices - Question 4 - 2022 - Paper 1

Step 1

Explain the following statement: A budget has both a planning function and a control function.

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Answer

A budget serves both planning and control purposes.

  • Planning Function: It helps to forecast expected income and allocate resources appropriately, ensuring that financial targets are set in alignment with the farm's goals.
  • Control Function: It acts as a benchmark against which actual performance can be measured, allowing adjustments to ensure that the farm activities conform to planned operations.

Step 2

Give TWO examples of inputs that must be budgeted for.

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Answer

  • Seed
  • Fertilizer

Step 3

Give an example of an output that must be budgeted for.

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Answer

Harvested product.

Step 4

Indicate what must be budgeted for in terms of resources for a crop production enterprise.

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Answer

Budgeting should include identifying available resources, determining their utilization, and estimating costs associated with each resource.

Step 5

Calculate the GROSS PROFIT. Show the formula and ALL calculations.

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Answer

To calculate GROSS PROFIT, use the formula:

extGROSSPROFIT=extFarmReceiptsextFarmExpenses ext{GROSS PROFIT} = ext{Farm Receipts} - ext{Farm Expenses}

Calculations:

  • Farm Receipts = R942 700.00
  • Farm Expenses = R780 900.00

extGROSSPROFIT=R942700.00R780900.00=R161800.00 ext{GROSS PROFIT} = R942 700.00 - R780 900.00 = R161 800.00

Step 6

Calculate the NET PROFIT. Show the formula and ALL calculations.

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Answer

To calculate NET PROFIT, use the formula:

extNETPROFIT=extGROSSPROFITextTotalIndirectExpenses ext{NET PROFIT} = ext{GROSS PROFIT} - ext{Total Indirect Expenses}

Where Total Indirect Expenses = Interest Costs + Depreciation + Family Living Costs and Income Tax

Calculations:

  • GROSS PROFIT = R161 800.00
  • Interest Costs = R211 700.00
  • Depreciation = R72 300.00
  • Family Living Costs and Income Tax = R52 300.00

Total Indirect Expenses = R211 700 + R72 300 + R52 300 = R336 300.00

extNETPROFIT=R161800.00R336300.00=R174500.00 ext{NET PROFIT} = R161 800.00 - R336 300.00 = -R174 500.00

Step 7

Distinguish between seasonal workers and occasional workers used in agriculture.

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Answer

Seasonal workers are employed for repetitive tasks that are time-dependent, while occasional workers are hired for specific project-based tasks that do not occur regularly.

Step 8

State THREE requirements of good record-keeping.

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Answer

  • Clear and simple
  • Specific
  • Up to date

Step 9

Describe the condition of a fresh raw product that makes it acceptable to the consumer.

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Answer

A fresh raw product must be firm, not wilted, and have a pleasing smell and color, free from any rot, bruises, or blemishes.

Step 10

Compare mechanical harvesting and harvesting by hand. Copy and complete the table below in the ANSWER BOOK.

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Answer

Mechanical HarvestingHand Harvesting
Less influence of weather conditionsGreater influence of weather conditions
Theft of produce is lessTheft of produce is more

Step 11

Name THREE correct personal health and hygiene practices for labourers handling fresh produce.

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Answer

  • Must be well trained
  • Good toilet practices
  • Regular hand washing

Step 12

State TWO main factors that determine the method of storage of a raw agricultural product.

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Answer

  • Type of product
  • The relative humidity of the environment

Step 13

A process during which food is treated with mild heat to eliminate pathogens and extend shelf life.

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Answer

Pasteurisation.

Step 14

A process during which one or more components are separated selectively from a liquid or solid mixture by means of a liquid immiscible solvent.

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Extraction.

Step 15

The process of converting carbohydrates to alcohol or organic acids using micro-organisms, such as yeasts or bacteria.

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Fermentation.

Step 16

A controlled heating process used to completely eliminate all living micro-organisms.

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Sterilisation.

Step 17

During this process soft mixed ingredients are forced through an opening in a perforated plate to produce the required shape at a high temperature.

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Answer

Extrusion.

Step 18

Give ONE reason for using EACH of the following packaging methods for agricultural products:

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Answer

Vacuum packaging helps to prevent air from entering, which reduces spoilage. Non-vacuum packaging is generally easier and quicker to apply.

Step 19

Give the farmer advice on the requirements regarding the truck and the trailer that will be used to transport the animals.

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Answer

  • The truck must have a non-slip floor to prevent animals from falling.
  • The trailer must provide adequate space to ensure animal safety and comfort during transport.

Step 20

State TWO items required by the animals during the trip, which must also be available before and after the journey.

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Answer

  • Water
  • Food — hay, concentrate

Step 21

Explain why the farmer is concerned about the stress levels of the animals.

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Answer

Stress can have negative effects on the health and performance of farm animals, leading to weakened immune systems, reduced reproduction rates, and overall lower productivity.

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