APPENEIX 

 PRICES AND RATES USED ON THE FARM 



Interdepartmental Transactions. In the illustrations and 

 problems in the foregoing chapters the prices have been given 

 for commodities; and rates of interest arbitrarily assigned 

 almost without exception. In practical farming operations 

 such prices and rates must be determined in other ways for 

 each transaction as it arises. 



In transactions with outsiders, prices are fixed by market 

 or special agreement. In transactions or adjustments between 

 farm departments prices are determined according to logical 

 principles of accounting and farm management. 



It has been pointed out that a profit is not a profit unless 

 every element of cost has been properly considered that a 

 profit on hogs when calculated by one man might have been 

 shown as a loss under the method of accounts employed by 

 another. A man usually deceives no one but himself if he 

 does not show the true profits of each of his various farming 

 operations. It is necessary, therefore, to have good logic and 

 sound accounting principles back of all entries that affect the 

 profits of any department. 



A charge to Swine and a credit to Corn account for the 

 feed consumed will tend to decrease the profit on swine and 

 increase the profit on corn. A charge to Household and a 

 credit to Cattle or Dairy Cattle for the products consumed by 

 the family will tend to increase the profit from dairy cattle 

 and increase the household expenses. It follows, then, that 

 the price at which the swine are charged for feed, and the 

 price charged to the household for dairy products will have 

 a considerable bearing upon the financial showing of the pro- 

 ductive elements involved. 



The transactions between any of the farm elements do BQt 



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