sunday-avatar

Capital budgeting involves​ ________.

  • a. Preparing the sales budget for the coming year
  • b. Deciding among various long-term investments
  • c. Budgeting for yearly operational expenses
  • d. Analyzing various alternatives of financing available to a company
almost 7 years ago
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6 replies

almost 7 years ago
raja_g-avatar
Capital budgeting is important for any company. It is one of the key factor in company survival or closure. Capital budgeting is making decisions on company’s capital projects, machinery and assets; whether to fund these or not. It helps deciding how much, if, profitable these are in long term planning. Capital budgeting also includes determining the new profitable ventures in the future. It includes all projects with minimum one year age. More on capital budgeting in lecture notes.
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almost 7 years ago
a.q-avatar
Capital budgeting involves deciding among various long-term investments.
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