344 FARM ACCOUNTING 



plain reduction of capital for which the crops are not 

 responsible. 



Extraordinary losses in crops due to flood, frost or gen- 

 eral weather conditions are losses that do not have a very 

 great effect upon the aggregate cost of production. They 

 do have an effect upon the cost per bushel or ton, because 

 of the reduction in the size of the crop harvested. Weather 

 conditions, however, might cause an increase in the ag- 

 gregate cost of the crop when they necessitate replanting, 

 or when poor roads increase the cost of marketing. On the 

 other hand, such conditions might cause a reduction in the 

 cost of the crop if continued rains prevent proper culti- 

 vation. 



For all practical purposes, then, tJie aggregate produc- 

 cost and total cost are not affected by weather condi- 

 tion*, while thi unit costs are so affected. 



Meaning of Profit. As in the case of the term "cost" 

 then- is also a great opportunity for variations in the mean- 

 ing of the word 4> pr When a man says that he has 

 made a profit of $1200 on hogs during a given year, what 

 does he mean? When he says he has made a profit of 

 on alfalfa, what does he mean? Unfortunately it is usually 

 impossible to say just what he means without first finding 

 out what elements of expense and income he consid.-ivd 

 before deriving the figure which he calls "profit." It is 

 to be Impnl that as the science of farm accounting devel- 

 ops, there will be a more common understanding of the 

 use of the fundamental ter 



The meaning of the word "profit" depends upon several 

 conditions. 



1. The system of accounting used, i.e., whether a general 

 or cost system. 



J. The values used in calculating labor, horse labor, feed 

 consumed and depreciation. 



3. The consideration of the operator's wages, say $600, 



