Explain the following statement:
A budget has both a planning function and a control function - NSC Agricultural Management Practices - Question 4 - 2022 - Paper 1
Question 4
Explain the following statement:
A budget has both a planning function and a control function.
A budget serves dual purposes in agricultural finance. Firstly, it ha... show full transcript
Worked Solution & Example Answer: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
Give TWO examples of inputs that must be budgeted for.
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Answer
Seed: The cost of purchasing seed is a crucial input in crop production that needs to be budgeted for.
Fertilizer: Fertilizer is essential for plant growth, and its expenses should be included in the budget.
Step 2
Give an example of an output that must be budgeted for.
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Answer
Harvested product: The expected revenue from the sale of harvested crops should be included in the budget.
Step 3
Indicate what must be budgeted for in terms of resources for a crop production enterprise.
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Answer
Budgeting for resources involves identifying the available resources, determining their utilization, and estimating the related costs for inputs such as labor, equipment, and materials needed for successful crop production.
