Investing in fixed assets would be classified as which type of budgeting?
A)operating budgeting
B)capital budgeting
C)master budgeting
D)working capital budgeting

Question

Quizplus · Accepted Answer

Investing in fixed assets involves making long-term strategic decisions related to the acquisition of new fixed assets or the improvement of existing ones. This type of budgeting is referred to as capital budgeting. Operating budgeting focuses on day-to-day operations, master budgeting encompasses both operating and capital budgeting, and working capital budgeting pertains to managing the company's short-term cash flow.

Investing in Fixed Assets Would Be Classified as Which Type