The main purpose of capital budgeting is to help managers make decisions about
A) long-term investments.
B) short-term investments.
C) discounts to offer to customers.
D) nonfinancial constraints on expansion.

Question

Quizplus · Accepted Answer

Capital budgeting is the process of evaluating and selecting long-term investment projects for a company. The main purpose is to ensure that the company's resources are allocated to projects that will generate the highest returns and add the most value to the company. Therefore, the correct answer is A) long-term investments.

The Main Purpose of Capital Budgeting Is to Help Managers