Agricultural Marketing is one of 9 topics in the Grade 12 Agricultural Management Practices CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. What is cost-plus pricing?
Calculating the total cost of production per unit and adding a margin to ensure a profit
Setting a price purely based on what competitors currently charge
Determining price only through competitive bidding at an auction
Agreeing a fixed price with a buyer before production begins
Answer: Calculating the total cost of production per unit and adding a margin to ensure a profit — Cost-plus pricing sets the price by calculating the total cost of production per unit and adding a margin (mark-up) to ensure a profit.
Easy
2. Which pricing method is commonly used for products such as livestock and wool, determined through competitive bidding?
Auction pricing
Cost-plus pricing
Contract pricing
Market-related pricing
Answer: Auction pricing — Auction pricing, common for products such as livestock, wool, or certain fresh produce, is determined through competitive bidding, with price set by the highest bidder at that sale.
Medium
3. Name the pricing method where a farmer agrees a fixed or formula-based price with a buyer in advance of production or delivery.
Answer: contract pricing — Contract pricing involves the farmer agreeing a fixed or formula-based price with a buyer in advance of production or delivery, reducing price uncertainty for both parties.
