Capital budgeting tends to focus primarily on:

Question

Quizplus · Accepted Answer

Capital budgeting focuses primarily on programs or projects, which involve investing in long-term assets or activities that generate future cash flows, rather than short-term expenses such as costs or cost centres. The goal is to evaluate which projects will provide the highest return on investment for the organization. Revenues and costs are certainly important factors to consider in the analysis, but they are secondary to the selection of the most profitable programs and projects. Allocation tools are also relevant, but they usually come into play after the decision to invest has been made, as a way to distribute resources and track performance.

Capital Budgeting Tends to Focus Primarily On