793-122 Planning and Budgeting Techniques

Credit Points

HECS Band

Coordinator

Prerequisites

Accounting for Management.

Semester

Contact

Subject Description

The objective of this subject is to enable students to:

• identify the need for different types of budgets in the management of the business and complete budgets used in planning to meet business objectives;

• undertake total enterprise and individual gross margin analysis;

• complete a partial budget, sensitivity analysis, and break even analysis;

• make decisions and plan over time incorporating, discounting, compounding new present value calculations and calculating internal rate of return;

• complete a combined enterprise budget incorporating land labour and capital;

• make decisions about investment in plant/livestock with respect to acquisition and level of ownership and the associated costs.

The content includes: Gross margin analysis, partial budgets, sensitivity analysis, break even analysis, whole farm budgets, managerial analysis, discounting and compounding net present value, internal rate of return, machinery budgeting and case study.

Assessment

Internal students - Two assignments of 1500 words (25% each); three hour test (50%). External students - Two assignments of 3000 words each (50% each).

Prescribed Texts

• Makeham and Malcolm, The Farming Game Now. Cambridge University Press, Melbourne.
• Makeham and Malcolm, What Price Farm Budgets. Just Managing Press, Melbourne.