NQF Level: 1 US No:

Transcription

1 NQF Level: 1 US No: Assessment Guide Primary Agriculture Recording of the Income and Different Costs in an Agri- Business Assessor: Workplace / Company: Commodity: Date: The availability of this product is due to the financial support of the National Department of Agriculture and the AgriSETA.

2 2 Before we start T his assessment guide contains all necessary activities and instructions that will enable the assessor and learner to gather evidence of the learner s competence as required by the unit standard. This guide was designed to be used by a trained and accredited assessor whom is registered to assess this specific unit standard as per the requirements of the AgriSETA ETQA. Prior to the delivery of the program the facilitator and assessor must familiarise themselves with content of this guide, as well as the content of the relevant Learner Workbook. Please Note: This Unit Standard Assessment Guide must be read in conjunction with the generic Assessor Guide as prescribed and published by the AgriSETA. The assessor, facilitator and learner must plan the assessment process together, in order to offer the learner the maximum support, and the opportunity to reflect competence. The policies and procedures that are required during the application of this assessment are available on the website of the AgriSETA and should be strictly adhered to. The assessor must familiarise him/herself with this document before proceeding. This guide provides step-by-step instructions for the assessment process of: Title: US No: NQF Level: 1 Credits: 2 T his unit standard is one of the building blocks in the qualification listed below. Please mark the qualification you are currently assessing, because that will be determined by the context of application: Title ID Number NQF Level Credits Mark National Certificate in Animal Production National Certificate in Mixed Farming Systems National Certificate in Plant Production Please mark the learning program you are enrolled in: Are you enrolled in a: Y N Learnership? Skills Program? Short Course? Note to Assessor: If you are assessing this module as part of a full qualification or learnership, please ensure that you have familiarized yourself with the content of the qualification.

3 3 1 SO 1 Discuss with your group Learner Workbook: Page 3 Facilitator Guide: Page What does the term capital mean? Wealth in the form of money or property owned by a person or business and human resources of economic value. 2. Why does a farming business need capital? If we want to operate a successful agri-business we will need capital (money) to buy the following types of things: Buy land. Buy buildings. Buy machinery. Pay debts. Pay for operating costs. 3. Where can a farming business find capital? Use your own money - this is by far the quickest and simplest route to take; Borrow money from others - this might be an informal loan from family or friends or a formal loan from a lending institution like a bank; or; Get others to invest in your business - this means that they will own a part of your business and share in the profits and the decisions. 4. What will the farm use the capital for? Buy land. Buy buildings. Buy machinery. Pay debts. Pay for operating costs.

4 4 2 SO 1 Answer the questions Learner Workbook: Page 4 Facilitator Guide: Page What does it mean to deposit money at a bank? Placing your money for safe keeping with a bank. Your money increases with a percentage while you lave it with the bank. 2. What kind of document must be filled in when you deposit money? Deposit slip. 3. Past an example of a deposit slip that you filled out on the 15 th of February 2006 for the value of R As per bank, correctly filled out.

5 5 3 SO 1 Answer the questions Learner Workbook: Page 5 Facilitator Guide: Page If you have money saved with a bank, how can you obtain this money? By withdrawing it at an ATM, filling out a withdrawal slip. 2. Paste an example of a withdrawal slip that you filled out on 28 March 2006 to withdraw R As per bank; correctly filled out.

6 6 4 SO 1 Brainstorm with your group Learner Workbook: Page 6 Facilitator Guide: Page If you had to find capital for buying and starting a new farm, where can you find capital? Banks, own capital, borrow from various individuals, loan sharks, government funding, international funders, etc.

7 7 5 SO 1 Explain the terminology in your own words and give examples: Learner Workbook: Page 7 Facilitator Guide: Page What is an asset of a farm? Anything owned by an individual that has a cash value. This includes property, goods, savings or investments. 2. What is a liability of a farm? The state of being legally obliged and responsible. Indebtedness: an obligation to pay money to another party. 3. What is owner s equity of a farm? Assets Liabilities; also known as the owner s net worth.

8 8 6 SO 1 Explain to a partner what information is given on the balance sheet below, how it works and why such a balance sheet is drawn up: Learner Workbook: Page 8 Facilitator Guide: Page 12 Mpumalanga Small Farmers Trust Balance Sheet As at 28 February 2005 Fixed Assets Liabilities Plant & Equipment R Bank Loan R Land & Property Other Assets Creditors - (People that I R owe money to) R Total Liabilities R Owner's Equity Cash on hand R Debtors - (People who owe me money) Owner's Capital R Contribution R Stock on hand R Profits for 2005 R Total Assets R Total Liabilities & Equity R The Balance Sheet calculation is as follows: Assets = Liabilities + Owner's Equity What assets the farm owns and what it is worth. What the farms owes money for. What the owner s equity is at present.

9 9 7 SO 2 As a group, explain the following diagram which illustrates the flow of money in agribusiness Learner Workbook: Page 9 Facilitator Guide: Page 13

10 10 8 SO 2 Work with a co-worker Learner Workbook: Page 10 Facilitator Guide: Page What do you understand inputs of an agri-business to mean? Resources obtained from external sources in order to produce products and services. 2. List the inputs of the farm where you are completing your practical duties? Agro-chemicals, etc.

11 11 9 SO 2 Interview someone in the accounting department of the farm where you are performing your practical duties Learner Workbook: Page 11 Facilitator Guide: Page What costs does the farm where you are performing your practical duties have? As per farm.

12 12 10 SO 2 Draw a mindmap Learner Workbook: Page 12 Facilitator Guide: Page Why is it important for a farm to make a profit? How is profit determined? Profit is the aim of a business. Without profit, business cannot expand and grow Determine profit by calculating income vs. expenses.

13 13 11 SO 3 Speak to an expert on the farm and find out Learner Workbook: Page 13 Facilitator Guide: Page Give an example of a fixed cost of the farm. Why is it a fixed cost? E.g. monthly mortgage payment. Doesn t fluctuate in value from month to month. 2. Give an example of a variable cost of the farm. Why is it a variable cost? E.g. Casual wages. Some times more casuals are employed than other times, so wage bill varies. 3. Give an example of a direct cost of the farm. Why is it a direct cost? E.g. Plants for orchards. Farm has to plant it to gain a crop & it is directly involved in the production. 4. Give an example of an indirect cost of the farm. Why is it an indirect cost? E.g. Management salaries. Its contribution is for more than just the final product produced.

14 14 12 SO 4 Ask an expert on the farm where you are performing your practical duties Learner Workbook: Page 14 Facilitator Guide: Page What is stock? Those things (e.g. agro-chemicals) that are kept to run the farm. 2. Why do farms have stock? To complete activities to produce its product. 3. What types of stock does the farm keep where you are performing your practical duties? E.g. agro-chemicals, cleaning agents, tool parts, grease/oil/fuel, etc.

15 15 13 SO 4 Brainstorm as a group Learner Workbook: Page 15 Facilitator Guide: Page Why do farms keep records? To keep track of its activities. 2. What types of financial records do farms keep? E.g. income statement; balance sheet; etc. 3. What do farms need to compile financial records. For legal purposes; to keep track of income & expenditure. 4. What financial records do farms compile and what is each record s purpose. As per farm.

16 16 14 SO 4 Calculate the following: Learner Workbook: Page 16 Facilitator Guide: Page If you received a salary of R per month before deductions and work 5 days a month as a casual waiter at R25.00 a shift, what is your monthly income? (5x25) = If the farm where you work has an average income of R a month every second month, what is the annual income of the farm? 4000 x 6 = R a year. 3. If the farm has an income of R a month for 8 months of the year and it has a total expense of R for the year, is the farm making a profit or a loss? Explain your answer and give the value of the profit or loss. Income = R a year. Expense = R a year. Thus a loss is made of RR a year.

17 17 15 SO 5 Speak to an expert on the farm where you are performing your practical duties Learner Workbook: Page 17 Facilitator Guide: Page What materials does the farm often buy? As per farm, e.g. fertiliser. 2. Choose one of these materials. What is the price of one of this material per unit? As per farm, e.g. R50.00 per 25kg. 3. What labour does the farm require? As per farm, e.g. managers, supervisors, spray-pump operators, general workers, casual workers, etc. 4. What is the price of an average farm worker s labour daily? As per farm, e.g. R70.00 per worker per day. 5. If the farm needs 58 of the material units that you chose and have to employ 10 farm workers for 26 days to finish a job, what will it cost the farm. As per items chosen, e.g. (58 x R50.00) + (10 x 26 x R70.00) = R R18200 = R

18 18 16 SO 5 Discuss in class: Learner Workbook: Page 18 Facilitator Guide: Page 17 The farm is showing a loss of R a year. The farm has the following expenses in the year: Wages: R Utilities: R Annual Christmas Party: R Agro-chemicals: R Staff meals: R Vehicle maintenance: R Tools: R If you had to make strategic decisions to cut costs, what would you cut and why? As per learners strategies, though most likely cut costs on Christmas party, staff meals, utilities and wages..

19 19 Assessment Feedback Form Comments / Remarks Feedback to learner on assessment: Feedback from learner to assessor: Learner s Signature: Date: Assessor s Signature: Date:

20 20 Summative Test and Attitude & Attribute Evaluation B efore the knowledge test is undertaken, the learner must be reminded of what is expected from him / her in terms of summative and reflexive competence. Read and explain to the learner, the Preparation for Your Final Assessment section in the learner workbook. Learners and assessor should sign off this section to acknowledge that this step was completed. Please set up a knowledge test from the questions given as a guideline to learners and supply each learner with a test sheet. Supply each report with the following heading: Unit Standard: NQF Level: 1 Learner Name: Questions Model Answers Make a poster to show the flow of money in a farm. The poster should include at least: No answer is supplied, but the following should be used as a checklist. 1. Sources of money 2. What money is used for in a farm business 3. Income from the sales of produce 4. Profit 5. Loss

21 21 Assessment Feedback Form Comments / Remarks Feedback to learner on assessment and / or overall recommendations and action plan for competence: Feedback from learner to assessor: Assessment Judgement You have been found: Competent Not yet competent in this unit standard Learner s Signature: Actions to follow: Assessor report to ETQA Learner results and attendance certification issued Date: Assessor s Signature: Date: Moderator s Signature: Date: