Farmers can use a number of tools to assess the financial performance of an enterprise.
A common budget used in decision making and planning by the manager is the Gross Margin. Following your reading of the information in section 2 of Beef Gross Margins test your understanding by answering these questions. If you are to use the GM to compare enterprises they must be expressed in similar units. Outline the two main uses of a Gross Margin. Discuss 6 factors, other than GM comparison, that a farmer should consider before undertaking a major enterprise change.