Farm Planning and Cost Estimation MCQs

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1. : What is the main objective of farm planning?
(A) Optimum utilization of farm resources for maximum returns
(B) Entertainment
(C) Random land use
(D) Ignoring financial costs

2. : Cost estimation in farm management refers to:
(A) Predicting expenses required for farm operations and projects
(B) Farmer’s age calculation
(C) Random cost guessing
(D) Entertainment budgeting

3. : Which of the following is a fixed cost in farming?
(A) Land rent
(B) Fertilizer cost
(C) Pesticide cost
(D) Hired labor

4. : Variable costs in farming change with:
(A) Level of production
(B) Farmer’s mood
(C) Entertainment activities
(D) Land ownership

5. : Which tool is commonly used for farm planning and cost estimation?
(A) Farm budgets
(B) Wooden plough
(C) Farmer’s memory only
(D) Hand hoe

6. : Enterprise budgeting in farm planning helps in:
(A) Estimating costs and returns for a single crop or livestock enterprise
(B) Entertainment scheduling
(C) Weather forecasting
(D) Farmer’s diary keeping

7. : Whole-farm budgeting provides:
(A) A complete financial picture of the farm operations
(B) Entertainment value
(C) Soil pH data only
(D) Market prices only

8. : Which cost includes depreciation of machinery?
(A) Fixed cost
(B) Variable cost
(C) Opportunity cost
(D) Direct cost only

9. : Break-even analysis in farm planning determines:
(A) Production level where total cost equals total revenue
(B) Farmer’s leisure time
(C) Land size only
(D) Soil fertility

10. : Opportunity cost in farm management is:
(A) Value of the next best alternative forgone
(B) Farmer’s savings account
(C) Only cash expenses
(D) Random expenses

11. : Partial budgeting in farm planning is used for:
(A) Analyzing minor changes in farm practices or enterprises
(B) Long-term investment planning
(C) Ignoring small expenses
(D) Entertainment plans

12. : Which of the following is NOT a cost estimation method?
(A) Detailed estimation
(B) Approximate estimation
(C) Guesswork only
(D) Comparative estimation

13. : In cost estimation, direct costs are those that:
(A) Can be directly attributed to a specific crop or enterprise
(B) Never change
(C) Are fixed only
(D) Are entertainment related

14. : Indirect costs in farming include:
(A) Administrative expenses and overheads
(B) Fertilizer costs
(C) Seed purchase
(D) Labor wages

15. : The farm planning process usually starts with:
(A) Survey and resource assessment
(B) Farmer’s entertainment plan
(C) Random seed sowing
(D) Market guessing

16. : Sensitivity analysis in farm cost estimation is used to:
(A) Study effects of changes in key variables on costs and returns
(B) Entertainment only
(C) Record farmer’s age
(D) Weather reports only

17. : Long-term farm planning usually includes:
(A) Machinery investment and infrastructure development
(B) Entertainment budgeting
(C) Weekly crop schedules only
(D) Guessing crop yields

18. : Cash flow budgeting in farm management is important for:
(A) Tracking inflows and outflows of money over time
(B) Soil fertility checks only
(C) Weather reports only
(D) Entertainment expenses

19. : Cost-benefit analysis is used in farm projects to:
(A) Compare expected costs with projected benefits
(B) Entertainment planning
(C) Estimate soil pH
(D) Farmer’s social activities

20. : Which is a capital expenditure in farming?
(A) Purchase of tractor
(B) Fertilizer cost
(C) Labor wage
(D) Fuel cost

21. : Which factor MOST affects variable cost in crop farming?
(A) Yield level
(B) Land ownership
(C) Depreciation
(D) Loan repayment

22. : In whole-farm planning, diversification reduces:
(A) Risk and dependence on one enterprise
(B) Soil fertility
(C) Entertainment expenses
(D) Cash flow

23. : Which financial tool is used to evaluate farm project profitability over time?
(A) Net Present Value (NPV)
(B) Farmer’s memory
(C) Soil survey
(D) Random cost estimates

24. : Which is an example of an operating cost in agriculture?
(A) Fuel for tractors
(B) Purchase of land
(C) Construction of barn
(D) Machinery purchase

25. : The future of farm planning and cost estimation is focused on:
(A) Digital tools, software, and data-driven decision-making
(B) Ignoring technology
(C) Manual diaries only
(D) Random decisions