2. Chapter

Chapter 2_EN:  Introduction to the course

2.1: What are costs?

 

Materials

What are costs?

  1. Production factors that are used or consumed in the process of producing output
  2. Services that are used or consumed in the process of producing output
  3. Salaries and wages
  4. Interest expenses
  5. Taxes and insurance

 
2.2: Act of purchase

Are there costs incurred when ....
  1. we buy a tractor?
  2. we buy a tractor for the on-farm production?
  3. if we use a tractor for use for services to other businesses?
  4. when we buy a tractor for 100.000 € and sell it for 90,000 €?

 

2.3:    Fixed and variable costs, change in costs during expansion or restriction of production

2.3.1: Fixed and variable costs

 

 Quiz not available

 

2.3.2: Change in costs during expansion or restriction of production

 

Materials  

Fixed costs are:

  1. Accommodation costs
  2. Administrative work
  3. Sorting costs
  4. Tax consultants
  5. Harvesting operations

2.4: Overhead costs and special costs

 

 

Which costs are special costs?
  1. Pesticides
  2. Diesel
  3. Company car
  4. Feed
  5. Drying costs potatoes
  6. Accounting
  7. Hail insurance
  8. Fertilizers

Which costs are overhead costs?
  1. Computer Operations Manager
  2. Tax Consultant
  3. Business Insurance
  4. Vaccinations
  5. own planting stock produced
  6. Harvesting operations
  7. Administrative work

2.5: Depreciation

 

Materials

What is the role of depreciation for durable assets?
  1. Documentation of the asset history
  2. The depreciation is directly deducted from the taxes
  3. The cost is spread over the operating life
The residual value.....
  1. is always zero
  2. can be zero or positive
  3. is negative, when the machine needs to be repaired
Which utilization limits restrict the use of durable assets?
  1. Stylish obsolescence, there are newer models and colors
  2. technical or physical obsolescence
  3. Wear of the machine by use
To calculate the depreciation threshold, we need the following information:
  1. Performance reserve in hours or ha
  2. Residual value
  3. Performance reserve in years
With the depreciation amount we can buy a new machine by the end of the utilization period:
  1. yes - in any case
  2. no, the sum is not enough if there are high price increases
  3. no - if there is still a residual value, it must be used for the replacement

2.6: Financing costs

 

Whether own funds (equity-financing) or borrowed funds are used (debt, for example, by a bank loan), financing always incurs costs!

2.6.1: Financing costs without residual value

 

Materials

For a car with a cost of 40,000 € and a residual value of zero (0), the average interest claim per year based on an interest rate of 4% is:

a. 3200 €/yr
b. 1600 €/yr
c. 800 €/yr
d. 400 €/yr

 

2.6.2: Financing costs with residual value

 

Materials

For a car with a cost of 40,000 € and a residual value of 10,000 € per year, the average interest claim at an interest rate of 4%, amounts to:

a. 1,600 €/yr
b. 1000 €/yr
c. 800 €/yr
d. 600 €/yr 

2.7: Insurance, motor vehicle tax, TÜ costs

 

Materials

 Which of the following costs for the tractor are "fixed costs":

  1. Insurance costs
  2. Fuels and lubricants
  3. Repair Costs
  4. Cost for technical inspection

2.8: Accommodation costs

 

Materials

Calculate the annual accommodation costs for a tractor with 5.0 m length and 2.3 m width in a lightweight construction garage with a gross area of 800 m² (20 m × 40 m, manufacturing cost of the garage 120,000 €)
a. 304 €
b. 254 €
c. 214 €
d. 194 €

2.9: Variable machinery costs

 

Why are diesel, oil and lubricants variable costs?
a. they change with the output
b. they depend on the actual production volume
c. they are dependent on the intensity
 

2.10: Repair costs

 

Materials

Please complete:
The average repair costs per hour ............ .. with increasing utilization of the machine!

a.  remain the same
b.  are falling
c.  are increasing

 

2.11: Exkursus:

Fixed assets and current assets