N D S U Home Page  North Dakota State University
INFORMATION find our service links to the right  Home  Ag Ec Home  Course Description  Calendar  AGEC Home

QUICK LINKS For Student related links, look below
 Course Topics
 Reference Topics
 Related Links
 Contact Instructor



Best if printed in landscape.

Financial Goals in Decision Making

Introduce Agricultural Management

Overview of Economic Resources

Management is Decision Making

Role of Goals

Decision Making Process

Agriculture and Selected Economic Concepts

Trends in Agriculture -- Causes and Implications

Demand and Supply

Characteristics of Competition

Financial Goals in Decision Making

Financial Goals and Financial Statements

Accounting Profit, Depreciation and Opportunity Cost

Production Theory and Diminishing Marginal Productivity

Enterprise Analysis

Partial Budget Analysis

Related topics of Present Value, Cash Flow, and Risk

Management Skills

Strategic Planning

Business Planning Process

Strategic Alliances: Contracts, Business Co-ownership, and Supply Chain Management

Additional Thoughts about Economic Resources

Land

Labor

Capital

Information

Risk

Review and Summary

Several of the common business goals are to earn a profit, pay obligations on time, increase the owner equity, and assume reasonable risks. As described on another page, decision making can be described as identifying and pursuing the alternative that best achieves one's goals. This section of the course focuses on how to assess the likelihood that the business' alternatives will achieve the owners' financial goals.

The discussion reviews the basic financial statements (income statement, cash flow, and balance sheet) and how they help assess progress towards the business' financial goals.  Several related topics are addressed:  accounting profit, depreciation and opportunity cost.

The next several topics emphasize thought processes for assessing the profitability of alternatives. The final page of this section addresses the idea that profits earned in the future are less valuable than profits earned today (time value of money and discounting to present value).  The last two topics consider cash flow and risk to assure the manager thinks about more than just profit.

The next page addresses financial statements as tools to measure progress toward financial goals.

Last Updated September 8, 2010

   

Email: David.Saxowsky@ndsu.edu

This material is intended for educational purposes only. It is not a substitute for competent professional advice. Seek appropriate advice for answers to your specific questions.

  NDSU Home  Phone Book  Campus Map  NDSU Search  College of Agriculture

E-Mail:sswandal@ndsuext.nodak.edu
Published by Agricusiness and Applied Economics
Morrill Room 217
North Dakota State University, Fargo, ND 58105-5636
Phone: (701) 231-7441