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May 6, 2016

“Production and marketing functions in agribusiness are inseparable “, using the stages in a production /marketing chain, justify the statement

QUESTION ONE
“Production and marketing functions in agribusiness are inseparable “, using the stages in a production /marketing chain, justify the statement above [25mks]

QUESTION TWO
Write short notes on the following terms as used in agribusiness management
a] Special problems in agribusiness production[4mks]
b] Strategic management and how it differs from administration and operational management [7mks]
c] Management effectiveness [6mks]
d]Time management in agribusiness [4mks]
e]Personnel management [5mks]

QUESTION THREE
a] Although general management principles and knowledge tend to be the same for most types of business regardless of size, there are a number of differences in agribusiness production management which justify a mention. Elaborate [10mks]
b] State and discuss the stages of industrial economic development [10mks]
c]Several factors determine the particular system that evolves/develops for a given industry [5mks]

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Scenario: Dancin’ Donuts, established in January 2019, is a thriving new business specializing in low-carb donuts. The 2019 keto diet fad led to increased sales, and the chief financial officer (CFO) prepared a robust budget for 2020. In early March 2020, the small business had record-breaking sales but abruptly needed to shut its doors because of the global pandemic. The CFO conducted the following analysis for the month of March: Dancin’ Donuts March 2020 Budget Actuals $ Var % Total Revenue 200,000 196,947 -3,053 -2% Total Cost of Goods Sold 100,000 98,000 -2,000 -2% GROSS PROFIT 100,000 98,947 -1,053 -1% Total Expense 75,000 72,000 -3,000 -4% Total Interest Income 200 100 -100 -50% Total Other Expense 1,000 1,000 0 0% -800 -900 -100 13% Earnings Before Interest, Taxes, Depreciation, & Amortization (EBITDA) 24,200 26,047 1,847 8% Total Interest Expense 6,400 6,385 -15 0% Total Depreciation & Amortization 10,000 10,000 0 0% Earnings Before Taxes (EBT) 7,800 9,662 1,862 24% Total Income Taxes (30%) 2,340 2,899 559 24% Net Income 5,460 6,764 1,304 24% Please answer the following questions: What does AVB stand for? What is the total revenue for March 2020 when compared to the budget? What is the variance from the budget in the net income for the month? What is the income tax percentage for the month?

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