Economics 101 - Part 2 of 3

摘要

The first two questions are answered with accounting records; the latter two are answered with economic analyses.Last month's column focused on the accounting aspects of a ranch business used to answer the first two questions listed above. This column will focus on question three - whether the current production system is the best use of ranch resources. Next month, I'll focus on the fourth question - how to make the ranch business more profitable. An "enterprise budget" is a common economic tool utilized to determine whether the current production system is the best use of ranch resources. However, I prefer to call it a "profit center budget" or, in this particular case, a "beef-cow profit center budget."