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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 as a planning function by linking expected income and anticipated expenses to the overall goals of the farm. This alignment allows farmers to allocate resources effectively and enables informed decision-making to achieve financial targets. On the other hand, the control function of a budget is crucial for monitoring actual activities against planned activities, ensuring that the farm stays on track financially and makes necessary adjustments to achieve defined objectives.

Step 2

Give TWO examples of inputs that must be budgeted for.

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  1. Seed: Farmers must allocate funds for purchasing seeds necessary for crop production.
  2. Fertilizer: Adequate budgeting for fertilizers is essential to ensure optimal crop yield and soil health.

Step 3

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

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Harvested product: The expected income from the sale of crops after harvesting should be budgeted for in order to evaluate the financial viability of the crop production.

Step 4

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

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Farmers should budget for the identification and utilization of agricultural resources such as labor, land, equipment, and inputs (seeds, fertilizers) while also estimating the associated costs.

Step 5

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

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Answer

Gross Profit is calculated using the formula:

Gross Profit = Farm Receipts - Farm Expenses

Calculating:

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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Net Profit is determined as follows:

Net Profit = Gross Profit - Total Expenses (Interest costs + Depreciation + Family living costs and income tax)

Where: Total Expenses = R21 700,00 + R72 300,00 + R52 300,00

Calculating: Total Expenses = R146 300,00 Net Profit = R161 800,00 - R146 300,00 = R15 500,00

Step 7

Distinguish between seasonal workers and occasional workers used in agriculture.

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Seasonal workers are engaged for repetitive tasks that are time-bound and specific to certain seasons or crop cycles, making their employment both necessary and predictable. In contrast, occasional workers are hired on an as-needed basis for specific projects or activities, without the same seasonal dependency, offering more flexibility in labor management.

Step 8

State THREE requirements of good record-keeping.

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Answer

  1. Clear and simple documentation: Records should be easy to understand and maintain.
  2. Practical and achievable: The record-keeping system must be feasible and relevant to the farm's operational needs.
  3. Up-to-date information: Regular updates are crucial to ensure that records accurately reflect current farm conditions and performance.

Step 9

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

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A fresh raw product should be firm and not wilted, ensuring good texture. Additionally, it should be free from any marks, bruises, or other deterioration signs. Furthermore, the product’s smell and color must indicate freshness and quality, meeting consumer expectations for visual appeal and sensory attributes.

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
Influence of weather conditionssmall / little
Theft of the produceless

Step 11

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

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Answer

  1. Regular hand washing: Proper hand hygiene is necessary to prevent contamination.
  2. Good toilet practices: Maintaining hygiene standards is crucial for food safety.
  3. Wearing protective clothing: Using appropriate gear helps reduce risk while handling produce.

Step 12

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

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  1. Type of product: Different products require specific storage conditions based on their physical properties.
  2. Relative humidity: The humidity levels must be controlled to prevent spoilage or degradation of products during storage.

Step 13

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

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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 yeast 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. It is then cut to a specific size with blades.

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Extrusion.

Step 18

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

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Answer

Removing all the air reduces spoilage or rotting of the product, thereby extending its shelf life.

Step 19

Give ONE reason for using EACH of the following packaging methods for agricultural products: Non-vacuum packaging.

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Answer

More products can be packed efficiently as it saves time on packaging.

Step 20

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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The truck and trailer must be slip-free to prevent animals from falling and injuring themselves. Additionally, sufficient side panels should be present to separate small and large stock to ensure safe transportation.

Step 21

State TWO requirements for the animals during the trip, which must also be available before and after the trip.

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  1. Water: Animals must have access to clean water to stay hydrated.
  2. Food: Adequate food supply, such as hay or concentrate, must be consistently available to ensure their health during the journey.

Step 22

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

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High stress levels in animals can negatively impact their performance, weaken their immune systems, and lead to issues such as reduced reproduction and digestive upsets, which are detrimental to overall animal well-being and productivity.

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