The ways to minimize the level of production costs

· Commit to business management. Specific financial and production goals are measured and monitored.

· Make wise purchase decisions to reduce investment in depreciable assets, such as machinery and vehicles.

· Avoid industry fads that are not cost effective.

· Develop systems for total resource management, including wildlife.

· Reduce investment in horses if you expect the cows to pay their expense.

· Avoid hay production by buying hay.

· Cutfeedinglosses.

· Improvegrazingutilization.

· Monitor and control purchased feed expenses.

· Don'toverstockgrazingland.

· Focus on reproduction (weaning percent based on exposed females). This is the No. 1 production factor for cow-calf producers.

· Control breeding seasons for best use of grazing.

· Buy replacements and use terminal cross bulls if you are a small producer.

· Stay clear of seedstock production. It loses money for most operations.

· Use proven health practices to ensure sound herd health. Develop a written preventive health program, have it reviewed by a veterinarian and then follow it.

· Evaluate opportunities to participate in cattle marketing alternatives.

· Don't spend money to reduce IRS taxes if they aren't sound investments that will increase after-tax equity. It doesn't make sense to spend a dollar to save 30 cents.
For IRS compliance, make sure to keep the ranch bank account separate from your personal account.

· Consider location when acquiring land for appreciation. Non-cattle uses of land are more important than grazing cattle for land appreciation.

· Get a good inventory and manage accounting systems to accurately measure and monitor performance.

Wage: essence and types

A wage is monetary compensation (or remuneration, personnel expenses, labor) paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed (a task wage or piece rate), or at an hourly or daily rate (wage labour), or based on an easily measured quantity of work done.

Wages are part of the expenses that are involved in running a business.

Payment by wage contrasts with salaried work, in which the employer pays an arranged amount at steady intervals (such as a week or month) regardless of hours worked, with commission which conditions pay on individual performance, and with compensation based on the performance of the company as a whole. Waged employees may also receive tips or gratuity paid directly by clients and employee benefits which are non-monetary forms of compensation. Since wage labour is the predominant form of work, the term "wage" sometimes refers to all forms (or all monetary forms) of employee compensation.

 

The main types of wages are:

1. Subsistence wage;

2. Minimum wage;

3. Fair Wage; and

4. Living Wage Subsistence Wage:

 - The wage that can meet only bare physical needs of a worker and his family is called subsistence wage. Minimum Wage: - Minimum wage is the wage that is able to provide not only for bare physical needs but also for preservation of efficiency of worker plus some measure of education, health and other things. Fair Wage:- Fair wages is an adjustable step that moves up according to the capacity of the industry to pay, and the prevailing rates of wages in the area of industry. Living Wage:- Living wage is that which workers can maintain the health and decency, a measure of comfort and some insurance against the more important misfortune of lie. In any even the minimum wage must be paid irrespective of the extent of profits, the financial condition of the establishment or the availability of workmen at lower wages. The wages must be fair, i.e. sufficiently high to provide standard family with,food, shelter, clothing, medical care and education of children appropriate to the workmen. A fair wage lies between the minimum wage and the living wage which is the goal. Wages must be paid on an industry wise and region basis having due regard to the financial capacity of the unit.